Bitcoin, Taxes & Income tax Legal Aspects. Canada Bitcoin Law

07.Sep.2022
Increasingly popular virtual currencies like Bitcoin are garnering headlines. It is an electronic currency independent of central banks and currently minimally regulated This currency allows you to make payments and trades at no charge, anywhere on the planet. At the legal level, the Federal Government has recently issued this statement: essence, the tax department advises us that the tax rules applying to barter should also be understood and applied to Bitcoin trades. For instance, if a person exchanges Bitcoins to purchase an clothing item, the seller must include and file in their income statement the equivalent price at fair market value of the item sold. If the piece of clothing is worth $20, then it becomes a taxable income of $20 (even if paid in virtual currency). In England, Her Majesty's Inland Revenue has recently issued a more in-depth guideline. Considering that our public right, here in Canada, is largely based on British law, it would be very interesting to follow the evolution of decisions rendered by UK courts. As for the American IRS, it also issued a directive in March, 2014. According to early analyses by observers of the finance and tax world in the US, it seems the IRS directive would be extremely difficult to implement in daily affairs. The American tax department chose to treat the Bitcoinв as property, rather than as a currency. Therefore, each transaction made with Bitcoins, whether to purchase a cup of coffee or a condo, will have to be calculated by the purchaser as a capital gain between the purchase price of the Bitcoins and their value at the time of the transaction. Let's hope that the Canada Revenue Agency will keep to a much simpler and more functional approach than the one put forward by the IRS. One last critical element to watch: The recent federal budget announced changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act which aim at further restricting the exchange of crypto currencies, such as Bitcoins. These measures would notably be concerned with the purchase and sale of crypto currencies. Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is the responsible agency. Our law firm offers legal and tax services to our clients who are seeking expertise to comply with their obligations concerning the trade of virtual currency. On an experimental basis, our firm currently accepts Bitcoin payments for our legal services.

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Bitcoin price drops 37% in just four days

24.Jan.2022
After a couple of weeks going relatively steady, the value of Bitcoin has dropped around 37, 5 percent in just four days, between December 4 and this Sunday. According to the platform Bitcoincharts. com, the price went from $1, 200 to $750 on Mt. Gox and other exchanges like BtcChina and Bitstamp followed the trend. Value fluctuation on Mt. Gox | Yingo.ca The price drop follows the statement released by the People’s Bank of China - which classified Bitcoin as a «virtual good» and forbade banks and other financial institutions to deal with cryptocurrency – and the French warning, as well as the announcement made by the previously Bitcoin-friendly divisions of Baidu and China Telecom. Both companies stopped accepting cryptocurrency. Value fluctuation on BtcChina | Yingo.ca After all the enthusiasm shown by Bitcoiners around the world when the two divisions announced they were taking virtual currency as a form of payment, both companies removed the references to Bitcoin payments from their websites on Friday (6), Coindesk reports. However, there’s no information explaining if the decision was taken due to any type of official directive or if the companies are just afraid of the consequences of a crash. Although the reaction of the crypto-community to the Chinese statement was welcomed with mixed feelings, it definitely affected Bitcoin’s value. From the past Wednesday (4) on, the price consistently decreased, only showing the first signs of recovery during this Sunday (8), when the price went from a little over $700 to almost $750, as registered by Bitcoincharts. com. The major exchanges began registering a wave of sales on Thursday (5) and the price kept going down. Coindesk points out that almost 52, 000 BTC were traded on Mt. Gox within 24 hours, between December 5 and 6. During this past week, the Chinese technology company Suning Tesco said it planned to introduce Bitcoin services like «storage insurance, insurance for Bitcoin transactions and other insurance products». The firm was also considering accepting Bitcoin payments for mining equipment and other hardware products. Now, these plans might be affected by the events of the last few days.

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Bitcoin and the advantages it offers to the artists

24.Jan.2022
Kuno Goda: «I wish to make the art world aware of Bitcoin and the advantages it offers to the artists» Since the Bitcoin community find out about the young German artist who created a work of art inspired by our favorite cryptocurrency, Kuno Goda has been at the center of several conversations. Some may love his work and some may not, but one thing is obvious: Goda got everyone talking about the influence of Bitcoin in another field of our daily lives, the world of art. So Bitcoin Examiner decided to talk with the artist, who got inspired in Andy Warhol’s «200 One Dollar Bills» to create his piece «200 Bitcoins». He lives in Hamburg, Germany, and even studied engineering before becoming a full time artist. How did you discover Bitcoin? Kuno Goda – I knew Bitcoin existed for quite some time. But is was only in the beginning of this year when I really dove into it and researched it in detail. It was a good time to do it, because this way I could better evaluate and filter the wave of reporting during the hype and crash in April. Do you own any Bitcoins? I do own a small amount of Bitcoin for experimental reasons. How did you come up with the idea for this piece «200 Bitcoins»? Like most people, I was a little sceptical of Bitcoin when I first researched it. It’s very hard to get a grasp of it as a beginner, which I think is one of the major problems Bitcoin is facing right now. It’s easy to write it off as something with no intrinsic value. But so are most other currencies. When I realized it’s even the same with most artworks I knew I had to make something. Have you been contacted about the painting by clients or critics, for instance? I received a lot of feedback from the art and Bitcoin communities. Most of it positive. Some of them said the usual «this is not art, I could do this». But I’m used to comments like these by now. I have been contacted by some potential buyers, as well. But I haven’t sold it yet. People are really enjoying your work. Do you agree that this type of initiatives makes Bitcoin evolve to another level? Bitcoin is still very much a phenomenon in the tech community. Ultimately more people must become aware of it and make it more mainstream. I hope «200 Bitcoins» can be a small part of this shift. I wish to make the art world aware of Bitcoin – and cryptocurrencies in general – and the advantages it offers to the artists. Allison Schrager and many others pointed out that the art market is broken. Providing artists and galleries with the tools to easily sell artworks to art lovers and dealers all around the world could be one step to fix the art market. How do you see the Bitcoin scene in Germany? I have the feeling that the Bitcoin scene in Germany is the Bitcoin scene in Berlin. I’m not much experiencing a scene here in Hamburg. So Germany is not yet the crypto-wonderland some news outlets want it to be. Your country is working to regulate Bitcoin. Do you see that as a positive thing? That really could turn out to be a double edged sword. On one hand, it’s great that they acknowledged it as a ‘unit of account’. I wish the next step would be that the European Union and other countries would do the same. On the other hand, it could be a first step towards stricter regulation and possible interference with the freedom of transaction. In the end it all comes down to how it influences the tax income of the government. Right now the Bitcoin ecosystem is still small enough that it’s easy for the regulators to be generous. What about the future of cryptocurrency? I’m very excited to see how cryptocurrencies develop in Africa. Many people there are much more used to pay with their cell phones [Kenya and its M-Pesa program, for instance]. Many governments in Africa are not very stable and thus trust in the currency is very low. I think that is perfect soil for Bitcoin to blossom.

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