- Canada’s tax authority, the CRA, is determined to obtain Coinsquare’s user data.
- The CRA wants to learn whether Coinsquare’s crypto users paid taxes on their profits in the last 7 years.
- For now, Coinsquare has not complied, which is why CRA decided to use the courts to get what it wants.
Canada’s tax authority, the Canadian Revenue Agency (CRA) has been trying to seek out the country for anyone who may have made gains for trading crypto. There is a strong suspicion that many have not paid their taxes on their crypto earnings, and so CRA took legal action against crypto exchange Coinsquare in order to force it to hand over seven years of user data.
The CRA is after Coinsquare’s users
Apparently, the CRA was unable to get to an agreement with Coinsquare on its own, which is why it is now asking a judge to force the exchange to hand over the necessary information. Local reports say that the tax authority is quite determined to discover whether Coinsquare’s users have complied with their crypto tax reporting obligation.
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The country’s new tactic mirrors what the US IRS did against Coinbase. Instead of checking each individual citizen, it has now turned to the exchanges for data, and it plans to obtain it via the court.
However, while the IRS’s request for information was relatively limited, the CRA wants information all the way back to 2013.
What did Coinsquare say?
Stacy Hoisak, the CEO of Coinsquare, stated that the exchange is still not certain how it plans to proceed. For now, Coinsquare is still deciding in what way to react to the CRA’s demands, which originally came in September of this year.
The fact that the Ontario Securities Commission cracked down on Coinsquare back in July due to the exchange’s fake trading volume reports is likely not going to help the exchange in this situation.
Especially since Coinsquare’s top brass admitted to orchestrating a wash trading operation, They managed to reach the settlement since then, where the company’s top brass had to resign and pay major fines for their transgressions. It should be noted, however, that it is not clear whether the CRA’s actions are in any way related to that particular incident.