Worse. Even if you sell me a car worth $10,000 for $1, the tax on the transfer is based on the "value", not the "token" price you actually charged.
-MarkM-
Topic: Has anyone else looked into the legality of Bitcoin in Canada? (Read 1675 times)
October 13, 2012, 01:57:28 AM
I suspect Canada will be like UK law seeing as the Queen of England is it's Monarch (The Crown)
Use of alternative currency is not illegal
Use of barter trades are not illegal
but only contracts in legal tender are enforcable by the courts
the way to make a bitcoin trade enforcable by a crown court is for both parties
to agree, in writing, the value of their barter in the local legal tender.
(this also makes the trade subject to local sales taxes)
example:
I have a car worth CAD$10,000
and agree to take
your bitcoins worth CAD$10,000
(including all applicable taxes)
signed by I and You
Then you have a legally enforcable contract by the crown court and something to keep your accountant happy with.
Use of alternative currency is not illegal
Use of barter trades are not illegal
but only contracts in legal tender are enforcable by the courts
the way to make a bitcoin trade enforcable by a crown court is for both parties
to agree, in writing, the value of their barter in the local legal tender.
(this also makes the trade subject to local sales taxes)
example:
I have a car worth CAD$10,000
and agree to take
your bitcoins worth CAD$10,000
(including all applicable taxes)
signed by I and You
Then you have a legally enforcable contract by the crown court and something to keep your accountant happy with.
So if I traded a car worth CAD$10,000 for say...another car or something worth $10,000, do you have to pay tax for a transfer?
Wouldn't be fair...
you should contact the owner at cavirtex.com He has done considerable investigation into this issue already, I believe.
Indeed I will, thanks. Wow I'm stupid for not already having thought of that.
Does your province have a lawyer reference thing setup where you tell them the kind of lawyer you're looking for and they get you a free half hour with one of that type so they can hear you out and advise you as to whether they think you need one and whether they are the right one for the job?
If so it could be worth taking, as if you can convey to them in half an hour what bitcoin is and what you want to use it for they might at least be able to point you to the right bunch.
-MarkM-
If so it could be worth taking, as if you can convey to them in half an hour what bitcoin is and what you want to use it for they might at least be able to point you to the right bunch.
-MarkM-
Not sure. I've just set up consultations on my own, and I have another next week. I suspect it would be difficult to find anyone with specifically cryptocurrency knowledge with that method... although I suspect my search will prove futile no matter where I look in Canada. For now I am considering a couple firms with a lot of experience in securities and international taxation, and I will probably hire at least two of them on retainer.
I suspect Canada will be like UK law seeing as the Queen of England is it's Monarch (The Crown)
Use of alternative currency is not illegal
Use of barter trades are not illegal
but only contracts in legal tender are enforcable by the courts
the way to make a bitcoin trade enforcable by a crown court is for both parties
to agree, in writing, the value of their barter in the local legal tender.
(this also makes the trade subject to local sales taxes)
example:
I have a car worth CAD$10,000
and agree to take
your bitcoins worth CAD$10,000
(including all applicable taxes)
signed by I and You
Then you have a legally enforcable contract by the crown court and something to keep your accountant happy with.
Use of alternative currency is not illegal
Use of barter trades are not illegal
but only contracts in legal tender are enforcable by the courts
the way to make a bitcoin trade enforcable by a crown court is for both parties
to agree, in writing, the value of their barter in the local legal tender.
(this also makes the trade subject to local sales taxes)
example:
I have a car worth CAD$10,000
and agree to take
your bitcoins worth CAD$10,000
(including all applicable taxes)
signed by I and You
Then you have a legally enforcable contract by the crown court and something to keep your accountant happy with.
That's a good point. I'm pretty sure this is the case, I will find out.
Quote
The GST and its possible application to Bitcoin is quite interesting. https://bitcointalksearch.org/topic/canada-only-taxes-and-law-77186
I will look in to this as well, thanks.
you should contact the owner at cavirtex.com He has done considerable investigation into this issue already, I believe.
Is it not true in Commonwealth countries that you can make a contract contain "a consideration" by including a token unit of legal tender? Like I will sell to you for ten thousand bitcoins and one cent, or and one dollar, type of thing?
It was afterall as a child in England that my parents explained to me why people sometimes would "give" a building to a charity "for a pound" (or maybe it was "for a shilling" or "for a penny") due to having to make it "for" something to make it a proper contract.
Would that only make the item of legal tender part of the contract yet the parts about all the other objects to be exchanged somehow magically remain not actually proper clauses somehow?
-MarkM-
It was afterall as a child in England that my parents explained to me why people sometimes would "give" a building to a charity "for a pound" (or maybe it was "for a shilling" or "for a penny") due to having to make it "for" something to make it a proper contract.
Would that only make the item of legal tender part of the contract yet the parts about all the other objects to be exchanged somehow magically remain not actually proper clauses somehow?
-MarkM-
I suspect Canada will be like UK law seeing as the Queen of England is it's Monarch (The Crown)
Use of alternative currency is not illegal
Use of barter trades are not illegal
but only contracts in legal tender are enforcable by the courts
the way to make a bitcoin trade enforcable by a crown court is for both parties
to agree, in writing, the value of their barter in the local legal tender.
(this also makes the trade subject to local sales taxes)
example:
I have a car worth CAD$10,000
and agree to take
your bitcoins worth CAD$10,000
(including all applicable taxes)
signed by I and You
Then you have a legally enforcable contract by the crown court and something to keep your accountant happy with.
Use of alternative currency is not illegal
Use of barter trades are not illegal
but only contracts in legal tender are enforcable by the courts
the way to make a bitcoin trade enforcable by a crown court is for both parties
to agree, in writing, the value of their barter in the local legal tender.
(this also makes the trade subject to local sales taxes)
example:
I have a car worth CAD$10,000
and agree to take
your bitcoins worth CAD$10,000
(including all applicable taxes)
signed by I and You
Then you have a legally enforcable contract by the crown court and something to keep your accountant happy with.
The GST and its possible application to Bitcoin is quite interesting. https://bitcointalksearch.org/topic/canada-only-taxes-and-law-77186
I suspect Canada will be like UK law seeing as the Queen of England is it's Monarch (The Crown)
Use of alternative currency is not illegal
Use of barter trades are not illegal
but only contracts in legal tender are enforcable by the courts
the way to make a bitcoin trade enforcable by a crown court is for both parties
to agree, in writing, the value of their barter in the local legal tender.
(this also makes the trade subject to local sales taxes)
example:
I have a car worth CAD$10,000
and agree to take
your bitcoins worth CAD$10,000
(including all applicable taxes)
signed by I and You
Then you have a legally enforcable contract by the crown court and something to keep your accountant happy with.
Use of alternative currency is not illegal
Use of barter trades are not illegal
but only contracts in legal tender are enforcable by the courts
the way to make a bitcoin trade enforcable by a crown court is for both parties
to agree, in writing, the value of their barter in the local legal tender.
(this also makes the trade subject to local sales taxes)
example:
I have a car worth CAD$10,000
and agree to take
your bitcoins worth CAD$10,000
(including all applicable taxes)
signed by I and You
Then you have a legally enforcable contract by the crown court and something to keep your accountant happy with.
Does your province have a lawyer reference thing setup where you tell them the kind of lawyer you're looking for and they get you a free half hour with one of that type so they can hear you out and advise you as to whether they think you need one and whether they are the right one for the job?
If so it could be worth taking, as if you can convey to them in half an hour what bitcoin is and what you want to use it for they might at least be able to point you to the right bunch.
-MarkM-
If so it could be worth taking, as if you can convey to them in half an hour what bitcoin is and what you want to use it for they might at least be able to point you to the right bunch.
-MarkM-
I'm interested in finding law offices that have some sort of experience with BTC or other cryptocurrencies... I'm guessing there are none and I am going to have to pay out the nose to educate mine, but if you know of any please share here or PM me. Attorneys would ideally also be experts in securities and financial services.
Thanks.
Thanks.
Jump to: