News and Insights

CPA Issues Commentary on the Proposed GST/HST Changes in Relation to Cryptocurrencies

Tax Development Oct 30, 2019

On May 17, 2019, the Department of Finance Canada released legislative proposals which included a proposed exemption of cryptocurrencies from GST/HST, by treating virtual currencies as financial instruments.  

CPA Canada recently issued a commentary analyzing the possible implications for entities trading in digital currencies and those engaged in cryptocurrency mining activities. Amongst others, CPA Canada identified the issue of entities becoming deemed as financial institutions and the impact this could have on their input tax credit recovery.

To read about CPA’s analysis, click on Taxing Cryptocurrencies: GST/HST Proposals Raise Concerns or download a copy of the publication here