Introduction – What is a Tax Clearance Certificate? A Tax Clearance Certificate is a document issued by the Canada Revenue Agency (CRA) to the legal representative of a taxpayer. This certificate confirms that all income tax owing, including applicable interest and penalties, has been paid. Issued under subsection 159(2) of the Income Tax Act, a […]
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Introduction: Reporting Foreign Pension Income in Canada Many individuals who have had careers abroad before immigrating to Canada may be eligible to receive foreign pension income. However, Canadian residents are taxed on their worldwide income, including pensions from foreign sources. This often surprises new immigrants, especially when foreign pensions are non-taxable in the country of […]
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Introduction: Understanding the Voluntary Disclosure Program The Voluntary Disclosure Program (VDP), managed by the Canada Revenue Agency (CRA), offers taxpayers an opportunity to correct previously filed tax returns or disclose unreported income and assets without facing penalties or criminal prosecution. This program is particularly beneficial for taxpayers who unintentionally failed to comply with their tax […]
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Introduction: Reporting Worldwide Income for Canadian Tax Purposes Canadian residents are required to report their worldwide income from all sources on their income tax returns. Additionally, any offshore assets exceeding $100,000 must be disclosed using Form T1135. Non-compliance with these reporting requirements can lead to penalties, interest charges, and even potential prosecution for tax evasion. […]
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Unreported Offshore Assets: Understanding Your Obligations as a Canadian Resident Introduction: Reporting Offshore Assets as a Canadian Taxpayer Canada’s Income Tax Act requires Canadian residents to report all worldwide income on their tax returns, including offshore or foreign pension income. Two primary concerns arise for taxpayers with offshore assets: Determining Tax Residency: Was I a […]
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Introduction: Canadian Taxes and the Dark Web With the increasing availability of secure and anonymous internet platforms, a secretive layer of the web known as the “dark web” has evolved into a parallel marketplace. While widely associated with illicit activities such as drug trafficking, stolen data exchanges, and illegal firearms sales, the dark web is […]
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Introduction – International Tax Coalition Targeting Cryptocurrency In the summer of 2018, an international coalition of tax administrators—including the Canada Revenue Agency (CRA) and the United States Internal Revenue Service (IRS)—joined forces to address tax compliance in the cryptocurrency space. This initiative, aimed at exposing cryptocurrency users evading tax obligations, continues to expand. Since then, […]
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Introduction: Taxation and the Evolving World of Cryptocurrency Trading Cryptocurrency trading has introduced innovative financial mechanisms, such as flash loans, that present unique challenges for tax compliance. The Canada Revenue Agency (CRA) continues to adapt its approach to the rapidly evolving cryptocurrency space. Flash loans, a relatively new financial tool, highlight the complexities of regulating […]
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Introduction: Stablecoins and Their Growing Role in Cryptocurrency Stablecoins have emerged as a solution to the volatility commonly associated with cryptocurrencies like Bitcoin and Ethereum. These digital currencies are “pegged” to more stable assets, such as fiat currencies or precious metals, offering a predictable value that has made them essential to global crypto markets. Stablecoins […]
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Introduction: Understanding Bitcoin and Bitcoin Mining Bitcoin operates as a decentralized cryptocurrency within a distributed ledger system known as a blockchain. This system records all Bitcoin transactions, creating a transparent, public ledger. Transactions are validated by network participants—nodes or peers—ensuring security and authenticity. Bitcoin mining is the process of verifying these transactions through computational work, […]