Estimating Cryptocurrency Tax Hole
I am attempting to do a tough estimate for the tax hole for cryptocurrency in Canada and I am having a tough time producing it resulting from a scarcity of information on the subject. The tax hole is the quantity of tax not paid that ought to have been paid, so it is a sort of measure of non-compliance with tax legal guidelines. In Canada, crypto belongings are taxed when they’re disposed of. They’re taxed below enterprise revenue or capital features and may be taxed below GST/HST. Enterprise revenue tax applies to the complete quantity and capital features tax applies to solely 50% of the quantity.
I’m new to cryptocurrency and never fairly accustomed to the perfect information sources to have a look at. To date, listed below are my concepts to provide a tough estimate of a potential higher certain for the tax hole:
Provided that x% of the worldwide cryptocurrency market relies in Canada, roughly $y in crypto transactions will be sourced to Canada. Underneath a really excessive assumption that every one Canada attributed quantity displays unreported revenue taxable on the high fee of z%, cryptocurrency would contribute roughly $(zy%) to the tax hole, with the precise tax hole worth being a lot decrease. This $ (zy%) would function an higher certain. There are apparent points with the estimate, therefore why it’s a very tough estimate.
To do that estimate, I want to determine what the values of x% and $y are. Any steered information sources to have a look at for this?
If anybody has recommendations of how I can formulate a greater higher estimate or approximate a decrease certain estimate, or if there are any good information sources to have a look at that might assist me formulate a greater estimate, it might be appreciated.
Thanks!
