Cryptocurrency Accounting & Tax Services
We are one of the first blockchain accountants in Canada and have been working with a lot of different companies from the co-founder of Ethereum, to bitcoin mining companies, investors, developers, crypto exchanges…
If you’ve already been selected for an audit, you want someone in your corner who is knowledgeable in the nuances of both the tax code and the blockchain. Tax Partners can represent taxpayers…
If you plan to actively trade cryptocurrencies the best strategy is to transfer your positions to a “crypto corporation”. Our advisors use as section 85 rollover which ensures a tax-free transfer of assets from…
The common question in many Bitcoin/Crypto investors’ mind is “what effect will the introduction of futures have on Bitcoin?” We at Tax Partnerrs have had the opportunity to speak with some of the local innovators…
CRYPTOCURRENCY TAX ACCOUNTANTS WITH EXTENSIVE UNPARALLELLED BLOCKCHAIN ACCOUNTING EXPERIENCE!
FROM ICO‘S AND STO’S TO SAFT’S TO IDOS TO MINING, STAKING, AIRDROPS, HARD FORKS, FARMING, & MASTERNODES, NFTS, OUR TAX ACCOUNTANTS HAVE YOU COVERED
THE LEADING EXPERTS IN CRYPTOCURRENCY TAXATION
(We teach other Professionals how to handle crypto taxation)
When the Canada Revenue Agency (CRA) issues a warning, it’s important to sit up and take notice! This year, the CRA put out a press release specifically regarding Bitcoin tax and other cryptocurrency taxes for international and national tax accountants. The federal government treats virtual currency as property, which means that taxpayers who do not correctly report their virtual currency transactions can be audited for those transactions and, when appropriate, be held liable for penalties and interest. The CRA noted that “taxpayers could be subject to 100% penalty and/or criminal prosecution for failing to properly report the income tax consequences of virtual currency transactions”. In short, this means it’s time to get serious about Cryptocurrency taxes!
BITCOIN & CRYPTOCURRENCY TAX LAWS
For years, owners of cryptocurrencies like Bitcoin have avoided taxation. Cryptocurrencies are not taxed immediately at the time of acquisition or transaction, so the CRA, therefore, expects that individuals will report and pay taxes at a later date. After the meteoric rise in Bitcoin value in 2017, the CRA took a particular interest in the tax revenue that could be earned from enforcing cryptocurrency tax laws.
What are the crypto tax regulations on capital gains and losses? The biggest issue is the breadth of the information you must have to properly report each transaction. If your recordkeeping for each trade has been less than thorough, it can feel nearly impossible to file an accurate return. In addition to the date you bought the cryptocurrency, you will need to know the amount you paid in Canadian Dollars. Even if you were exchanging one cryptocurrency for another, the cost of the purchase must be reported in the dollar value at the time of the transaction. Given the constant market fluctuations, this value is rarely static. Furthermore, you will need to report the date that you sold the coins and how much you received for them. Unfortunately, many cryptocurrency holders cannot retrieve this information from their exchanges and will need to research each transaction individually.
BLOCKCHAIN ACCOUNTANTS: CRYPTOCURRENCY ACCOUNTING FIRM
The regulation of Bitcoin taxes and other cryptocurrency taxes has raised questions for many taxpayers. In previous years, very few people have reported their cryptocurrency holdings, gains, and losses. In fact, in 2015, only 802 people reported cryptocurrency on their returns in Canada! To put this number in perspective, the popular cryptocurrency exchange, Coinbase, now has over 43 million unique users. Although digital currency is popular across the world, there is still a shockingly low rate of reporting for United States taxpayers.
Tax Partners provides Accounting, Tax, Due Diligence, CRA Audit and a variety of consulting services to both domestic and international Blockchain Companies, Crypto Exchanges, Crypto Coins & Crypto Tokens and NFTs.
Our Blockchain Expert Accountants offer deep subject matter expertise to companies working with SAFT’s (Simple Agreement for Future Tokens), ICO’s (Initial Coin Offerings), STO’s (Security Token Offerings), and other blockchain token sales. We have a strong focus on Blockchain and Cryptocurrency taxes as the first full-service Blockchain accounting firm. Our Blockchain experts have extensive knowledge dating back nearly a decade as our work with leading start-ups exposed us to this new and exciting area early on. Tax Partners gained early blockchain exposure with a significant dedication and thought leadership in the areas of blockchain & cryptocurrency accounting & tax. We offer comprehensive blockchain accounting and crypto tax services.
Tax Partners has always focused on start-ups and has been providing blockchain accounting, tax, and consulting services to domestic and international blockchain companies and exchanges since 2014. Our extensive blockchain experience in digital assets and specifically digital currency has allowed us to develop best practices around blockchain accounting, cryptocurrency tax, and financial statements performance reporting.
Tax Partner’s intimate understanding of the market allows us to offer Accounting, CRA Audit Assistance, Tax Compliance & Tax Planning and a variety of Consulting & Advisory Services to Blockchain Companies and Investment Funds including issuers of ICO’s, IDO’s, STO’s, SAFT’s, NFTs, Crypto Coins, and various types of Crypto Tokens. We can help you maximize the value of your blockchain technology ventures.
INITIAL COIN OFFERING (ICO) ACCOUNTING SERVICES & SECURITIZED TOKEN OFFERING (STO) ACCOUNTING SERVICES
We support ICO, IDO and STO ventures throughout the entire lifecycle with all accounting, tax, and advisory matters:
- ICO/IDO Structuring and STO Structuring
- ICO/IDO Tax Strategy and STO Tax Strategy
- International tax planning for any international ICOs/IDOs
- Implementation and outsourced accounting, financial reporting, and tax reporting for the ICOs/IDOs
- Blockchain Accounting Compliance to GAAP (Generally Accepted Accounting Principles) Standards
- Preparation of federal, provincial income tax returns, coordination of international tax reporting
- ICO/IDO Bookkeeping and STO Bookkeeping
- ICO/IDO Management Accounting Services and STO Management Accounting Services
- ICO/IDO Fund Administration and STO Fund Administration
We also specialize in blockchain Canada Revenue Agency audit services and helping companies to assess and improve blockchain accounting controls.
Tax Partners actively fosters the blockchain and cryptocurrency community, sponsoring, mentoring, and providing content for training programs, educational materials, and blockchain organizations.
When you are looking for an accountant for your Blockchain or Cryptocurrency company, the experienced accountants and professionals at Tax Partners can help. Contact us today ([email protected]) and let us show you how we can add value to your business.
Our Blockchain Accounting & Cryptocurrency Tax services include:
- Best Practices Consulting
- Blockchain Internal Controls Consulting
- Business Management (Billpay, Bookkeeping, Cash Management)
- Business Valuation
- Cash-Flow Modeling & Projections
- Compensation Planning
- CRA Audit Assistance
- Cryptocurrency Accounting Valuation
- Cryptocurrency Tax Valuation Services
- Debt & Equity Structuring
- Domestic & International Tax Compliance, Planning & Preparation
- Due Diligence for Buyers & Sellers (Financial, Operational, & Tax)
- Entity Formation/Incorporation/Starting a Crypto Business
- Financial Modeling for Transactions
- Forecasting & Budgeting (Cash Burn and Cash Runway)
- GAAP Compliance for crypto assets and tokens
- Internal Control Setup & Internal Control Reviews
- Post-Acquisition Integration
- Pre-Transaction Evaluation & Planning
- Purchase Price Allocation
- Revenue recognition for tokens and GAAP (deferral of revenue and timing of recognition)
- Strategic Consulting
- Tax Reporting
- Tax Strategy & Structure
- Temporary CFO & Interim CFO Services
Should you require further guidance/assistance, please contact us by email at [email protected].
The content of this blog/article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Our firm does offer a FREE initial consultation (30 minutes) related to Crypto matters and charges on an hourly basis ($225 per hour plus HST).