Canada Struggles to Track Crypto Taxes as $100M Recovered in Audits

The Canadian Revenue Agency (CRA) has recently disclosed that a significant number of taxpayers who utilize cryptoasset platforms are either evading crypto taxes or are at high risk of non-compliance. According to a report by the Canadian Press, approximately 40% of taxpayers fall into this category, prompting the CRA to take action to address this issue.

The CRA revealed that they currently have 35 auditors dedicated to their cryptoasset program, working on over 230 files. These efforts have resulted in substantial taxes being collected through audits, with a total of $100 million in taxes recovered over the past three years. Despite these successes, the CRA acknowledged the challenges they face in identifying and ensuring compliance among taxpayers operating in the crypto space.

One particular area of concern for the CRA has been taxpayers using platforms like Dapper Labs to evade taxes. The Vancouver-based firm has been under investigation, with authorities seeking information on their top 18,000 users. However, due to legal limitations and a lack of clear CRA regulations, Dapper Labs has not faced full accountability for their role in potential tax evasion.

In response to these challenges, the Canadian government announced plans to introduce new legislation by Spring 2026 to address the issue of tax evasion in the crypto space. Finance Minister François-Philippe Champagne emphasized the government’s commitment to combating fraud and financial crime, stating that new measures are necessary to safeguard the financial security of all Canadians.

Meanwhile, Canada’s financial intelligence unit, FINTRAC, has been actively enforcing anti-money laundering laws. Recently, the unit fined Seychelles-based crypto exchange Peken Global Ltd., operating as KuCoin, over $19.5 million for failing to register as a foreign money services business in the country.

Overall, the CRA’s efforts to crack down on crypto tax evasion highlight the growing importance of regulating the crypto space to ensure compliance with tax laws. The introduction of new legislation in the coming years aims to address these challenges and strengthen the government’s ability to combat financial crimes in the digital age.