solsticelaw

Great to see our @CryptoTaxLawyr spotlighted by the @accountantquits. Our team, works alongside crypto-native accountants to help founders, teams, and investors tackle complex legal and tax issues. Feel free to reach out for your tax and legal needs.

🚀Attention Crypto Founders! Has seeing your friends in warmer tax havens this season got you thinking about leaving Canada? It’s unfortunate that talent is being pushed out of the country. But if you need help, @solstice_law is here for you! While countries like the Cayman Islands, Panama, and the UAE offer enticing tax benefits, don’t overlook Canada’s departure tax. The CRA may treat your tokens (vested or unvested), shareholdings, and other assets as sold at fair market value upon exit, triggering significant tax liabilities. In other words, even if you haven’t sold your assets and reaped a profit, you may still have to pay tax on any accrued gain. 😢 Proactive tax planning, a proper valuation from a Certified Business Valuator and a final tax return from a qualified accountant are key measures to ensure your departure goes smoothly. Our team is specialized in working with founders, crypto protocols and tech companies to explore exemptions and strategies to minimize your tax burden while ensuring compliance. Feel to free to dm for a free consultation.

These days, my team is seeing an increase in GST/HST audits against crypto operators even though they don't charge GST/HST to clients... The CRA is coming after Canadian Bitcoin ATM and other crypto operators for GST/HST that should have been collected by foreign suppliers but wasn't charged or collected at the source. These are a category of items called imported taxable supplies. They primarily include software, IP, or other inputs provided by a non-resident. Usually, exemptions can apply to relieve the GST/HST if these supplies are used in a commercial activity in Canada. However, as the sale of cryptocurrencies is exempt by GST/HST, the inputs to the operators do not fall under this exemption. Furthermore, the operators also cannot claim an input tax credit for this reason as well. What is the impact here? Even if a Canadian operator wasn't charged GST/HST on a foreign supply but should have been, they may still need to collect and remit the tax (self-assess) to the CRA. Even if the invoice shows no Canadian tax, you may need to self-assess GST/HST because the software or service is used here. Example: A Bitcoin ATM operator uses a software from a foreign supplier for their AML. The supplier does not charge GST/HST and does not have a Canadian presence. The operator must self-assess HST on the subscription — but can’t claim it back because the business earns exempt crypto income. There are exemptions and work-arounds available, but they depend on the nature of the service, the Canadian activities of the supplier, and the contracts themselves. If you’re a crypto, fintech, or Bitcoin ATM operator in Canada, now is the time to review your inputs from non-residents At @solstice_law we can help you identify where self-assessment applies — and where it doesn’t. #BTC #Eth #SOL #taxes