It should go without saying - we're obsessed with crypto and all things tax, and we're always trying to help investors understand it better. We wanted to know what Canadian investors understood about crypto, their tax obligations, how they file and whether the Canada Revenue Agency guidance makes sense to them... so we asked. Here's what we found out.
How many people in Canada have crypto?
Worldwide crypto adoption is on the rise. In fact, In our survey, 42.3% of respondents stated they owned some kind of crypto asset, whether that was tokens, coins or an NFT.
This makes Canada one of the leading countries for crypto adoption, alongside the USA, India and Australia.
How many Canadians know they need to pay tax on crypto?
Crypto tax is confusing - especially given the limited guidance from the CRA. So it's little wonder that in our survey, held less than a week before this year's tax deadline, 33% of Canadian taxpayers said they didn't know about their crypto tax reporting requirements.
Another 19% stated they wouldn't include their crypto assets in their tax returns - opening them up to liability given the steep penalties for crypto tax evasion in Canada.
How do Canadians file their crypto taxes?
In our survey, 66% of Canadians said they file their own taxes. Despite this, 20% said they were using software not designed to handle crypto regulations.
44% stated they felt overwhelmed and didn't know of a suitable tool to help them easily file their crypto taxes in compliance with CRA guidance.
How many Canadians agree with taxing crypto?
In our survey, 46.5% of respondents agreed with taxing crypto, while 34.3% disagreed with taxing crypto. A further 19.2% said they did not mind either way.
Koinly can help with your Canada crypto taxes
Whether you’ve left it until the last minute or you just want to get ahead of the game for next year, Koinly can help. Koinly partners with the leading Canadian crypto exchanges including Newton, Wealthsimple, Shakepay, Coinberry and hundreds more.
All you need to do is sync the wallets, exchanges and blockchains you use with Koinly via API or by uploading a CSV file of your transaction history. Koinly will then calculate your crypto taxes for you using the CRA approved adjusted cost basis method (and the superficial loss rule). All you need to do is download your Koinly crypto tax report, ready to file with the CRA.