The Canada Revenue Agency (CRA) is targeting users of Bitcoin and other crypto assets with audits alongside comprehensive questionnaires, according to Forbes.
An audit is a systematic and independent examination of a company or individual’s books, accounts, and other important documents.
The purpose of an audit is to ascertain how true the financial statements are – to present a fair and transparent view of the company or individual.
Reportedly, those who have been targeted by the CRA have also received comprehensive questionnaires. The questionnaires require users to detail all of their Bitcoin-related activities over the past several years.
The news comes after Jared Adams – CRA project oversight director – posted a tweet in January warning against possible money laundering implications when it comes to crypto.
The tweet was in response to a recommendation made by a separate Bitcoin-related company.
Also duly noted, from the company's website:
"We recommend you avoid mentioning that the wire transfer is intended for a Bitcoin purchase, as this may place your bank account under additional scrutiny and could lead to your wire transfers being cancelled."
🤔
— Jared Adams (@jared_adams613) January 30, 2019
The CRA released a statement claiming: “The Canada Revenue Agency understands that a vast majority of middle-class Canadians pay their fair share, but it remains committed to ensuring that without exception, every taxpayer abides by the same laws.
“As a world-class tax administration, the CRA is also committed to adapting its administration to keep pace with the evolving global services and products, and making key investments to effectively address the new ways of doing business in the global economy.”
Interested in reading more audit-related news? Discover how the Gemini cryptocurrency exchange passed its security compliance audit conducted by Deloitte.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.