Canada Revenue Agency steps up crackdown on virtual asset tax evasion

The Canadian Revenue Agency (CRA) has announced that it has begun auditing about 400 cases and will strengthen its crackdown on virtual asset tax evasion. The Canadian Revenue Agency plans to recover approximately $39.5 million in suspected unpaid taxes related to virtual assets. The Canadian Revenue Agency explained that there is an urgent need to strengthen public education on tax obligations related to virtual assets, and the goal of strengthening the crackdown on tax evasion is to ensure that all taxable cryptocurrency transactions are accurately and transparently reported. Previously, Canada announced plans to implement the Cryptocurrency Asset Reporting Framework (CARF) of the Organization for Economic Cooperation and Development (OECD) by 2026. CARF is a tax standard designed to address virtual asset tax evasion issues, and its updated version stipulates that it can collect virtual asset transaction information outside its jurisdiction.