Topic: Bitcoin status in Canada (Read 1121 times)
Let's take time and read referenced CRA publications.
Barter tax is pretty stupid if your interpretation is correct.
I just wanted to cross post this from an entry I made in the Press forum.
CBC released an article today about bitcoin taxation in Canada: http://www.cbc.ca/news/business/story/2013/04/26/business-bitcoin-tax.html?cmp=rss
Are there any Canadian tax lawyers or otherwise knowledgeable individuals here?
If I am interpreting this correctly, than what it is saying is that if I buy $1000 worth of bitcoins and immediately buy a product with them, I am subject to the "barter" tax provision and I owe income tax on $1000, whereas if I used the dollars I would owe nothing, only the merchant would be required to claim the "income". Is that right? That would completely cripple a functioning bitcoin economy in Canada.
CBC released an article today about bitcoin taxation in Canada: http://www.cbc.ca/news/business/story/2013/04/26/business-bitcoin-tax.html?cmp=rss
Are there any Canadian tax lawyers or otherwise knowledgeable individuals here?
If I am interpreting this correctly, than what it is saying is that if I buy $1000 worth of bitcoins and immediately buy a product with them, I am subject to the "barter" tax provision and I owe income tax on $1000, whereas if I used the dollars I would owe nothing, only the merchant would be required to claim the "income". Is that right? That would completely cripple a functioning bitcoin economy in Canada.
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