CRA News
Apr 2023 Charity & NFP Law Update
Published on April 27, 2023
CRA Releases Tax Tips on Cryptocurrency TransactionsWith the rise of cryptocurrency donations, it is important for charities and not-for-profits to understand their tax obligations and the importance of keeping accurate records. This is consistent with the general requirement imposed on charities to keep adequate books and records at all times. The Canada Revenue Agency (CRA) has released a Tax Tip article, “Keeping records of your cryptocurrency transaction,” published March 27, 2023. The article emphasizes the importance of keeping detailed records of all cryptocurrency transactions. To ensure accurate financial information, the CRA states that records should be kept for each cryptocurrency transaction, including, but not limited to, the following:
More information on tax obligations relating to cryptocurrency activities can be found in the CRA’s Guide for cryptocurrency users and tax professionals. However, please note that the CRA is currently updating this Guide. It is important to seek professional tax and legal advice to understand the implications of accepting and holding cryptocurrency. |