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Experience with the CRA

Rotfleisch and Samulovitch P.C. has 35 years of experience dealing with the CRA, including tax planning, Voluntary Disclosures, tax prosecution, and more. We add a passion for tech innovation and understanding of NFTs and crypto to our years of experience with the CRA.

Experience in CRA Tax Audits

Crypto Tax Lawyer knows the ins and outs of tax audits and CRA crypto tax audits. We know what they’re looking for, how to communicate with them, and what it takes to negotiate with the CRA.

End-to-End Solutions

We provide end-to-end services and solutions. If you’re facing a CRA tax audit that leads to tax prosecution, we can continue to represent you and advocate on your behalf. We can also preempt tax audits through Voluntary Disclosure submissions and smart crypto tax planning.

Esteemed Reputation

Rotfleisch and Samulovitch P.C. is a law firm with years of experience dealing with the CRA, tax planning, and tax prosecution. Our reputation speaks for itself when it comes to helping clients through tax audits.

Crypto Tax Lawyer & CPA

Founding tax lawyer David Rotfleisch is a Certified Specialist in Taxation in Canadian tax law, as well as a Chartered Professional Accountant (CPA). He also has a passion for technology and extensive knowledge of NFT and cryptocurrency taxes.

Get a Seamless Audit Experience

A CRA crypto tax audit can be stressful to handle on your own. We provide seamless support and end-to-end solutions to represent and guide you through the tax audit experience.

CRA Tax Audit Solutions

Your first step when facing a CRA cryptocurrency audit is to get answers to all of your questions. You may also want help building an income tax strategy that will help you avoid a crypto audit in the first place by staying up-to-date with the CRA.

Our NFT and crypto tax lawyers can help you avoid providing inaccurate information during an audit and assist with all forms of communication with the CRA.

Avoid Common Mistakes

Common mistakes that can trigger a CRA tax audit include talking about your tax situation to coworkers, family, or friends, large fund transfers, offshore accounts, and large charitable deductions. Smart income tax planning can help you avoid these common mistakes.

Necessary Documentation

The CRA can take a large number of documents from your workplace, home, and your accountant’s office. Tax audits can be wide-reaching in scope, and if you are facing a CRA crypto tax audit, they may investigate other elements of your income and reporting as well.

Preventing Penalties & Allegations

One major concern during a crypto audit is that the CRA can conclude that there is enough evidence to pursue the taxpayer for tax evasion or fraud. Working with a crypto tax lawyer can help you avoid tax prosecution and unnecessary penalties.

Professional Support

Crypto Tax Lawyer provides you with the professional support you need to navigate a crypto tax audit with the CRA. An expert in tax audits and crypto tax laws in Canada will tell you what to expect, provide legal advice, and support you as the CRA collects documentation and information about your tax returns.

Advocacy & Negotiations

You need an advocate who represents you when communicating and negotiating with the CRA. When the CRA proposes an amendment to past years’ returns, you may want to provide a new proposal in light of new information. The process is easier with an expert familiar with the tax auditing process and the technical nature of NFT and crypto transactions.

Voluntary Disclosure Programs

If you are concerned that a crypto tax audit could yield unfavourable results but no investigation has been initiated, the Voluntary Disclosure Program (VDP) is an option worth exploring. You can correct past years’ tax returns through the Voluntary Disclosure Program, including declaring crypto taxes you did not report, without incurring additional penalties beyond the amount owing.

Crypto Tax Planning

Good crypto tax planning can prevent a crypto audit or leave no inaccuracies for the CRA to uncover. The right crypto tax plan can help you save money on your taxes and protect you from CRA crypto audits.

Be Aware of Potential Prosecution

Prosecution for crypto tax evasion or tax fraud can be time-consuming and expensive, and it can also lead to extensive penalties and even jail time. When the CRA completes an audit, they may forward your case to Crown (CRA Department of Justice) prosecutors.

Frequently Asked Questions About CRA Crypto Audits

What is a crypto audit?

A crypto audit is a tax audit conducted by the CRA where proceeds earned from cryptocurrency are in question. During a tax audit, the CRA will investigate any records relevant to the taxpayer’s income. These records may include journals, ledgers, expense accounts, invoices, financial records, and bank information. The CRA increasingly has ways of tracking NFT and crypto transactions and traders, especially among taxpayers with significant assets.

How does the CRA tax crypto?

The CRA treats cryptocurrency and NFTs the same way it taxes commodities. Crypto tax will either be income tax or capital gains tax. If it is income, i.e., you earn regular income from cryptocurrency as a business or, in some cases, even as a regular hobby, all of the profits you earn from NFTs or crypto are treated as taxable income. If it is considered a capital gain, as many property and asset sales unrelated to your profession are, only half of the profits are taxable, and they can also be offset by claiming a capital loss from other transactions.

How long does a CRA crypto audit take?

A CRA crypto tax audit can take anywhere from several weeks to several months. Once the audit is complete, the auditor will recommend adjustments to the tax returns under review. Those adjustments are made in writing and submitted to you.


In some cases, the auditor may trigger an investigation by the Criminal Investigations arm of the CRA, which can investigate for tax evasion and tax fraud. This will generally result in a search warrant be executed against the taxpayer and often the accountant as well. If this is a possibility, you will want representation on your side as quickly as possible.

Who is likely to get a CRA crypto tax audit?

The CRA has the authority to audit anyone who pays taxes in Canada. Businesses tend to be much more likely to be audited than employees, including small and medium-sized businesses, as well as large businesses and corporations. Businesses in industries with a history of poor compliance are also more likely to be targeted. Large transfers into or out of a bank account or cryptocurrency exchange will also likely figure a tax audit. In the past several years, the CRA has made several announcements related to its focus on auditing cryptocurrency transactions.

What causes a CRA crypto audit?

There are several red flags that commonly trigger audits. They include things like reporting recurring losses or below average income for taxpayers in your industry, claiming abnormally high expenses (such as 100% of a business vehicle), having offshore accounts, and large fund transfers.


If you’re a NFT or crypto investor with significant assets, you may be more likely to go through a tax audit, as the CRA is targeting crypto transactions in an effort to crack down on tax avoidance, tax evasion, and criminal activities that use NFT or  cryptocurrency. Large transfers into or out of a bank account or cryptocurrency exchange will also likely figure a tax audit.

How long does the CRA have to perform a crypto tax audit?

The CRA has four years from the date on your Notice of Assessment to audit your tax return. Your Notice of Assessment is a document you receive when the CRA confirms they have received your tax return. After four years have passed, a statute of limitations applies, though there are exceptions. No statute of limitations applies if the CRA believes you have committed tax fraud or that you have been careless or wilfully misrepresented your tax situation.

What to expect during a CRA crypto tax audit?

The CRA tax audit will typically begin with a detailed and lengthy crypto tax questionnaire. During a CRA crypto tax audit, you can expect the CRA to do a thorough investigation of your financial records and statements, whether they pertain to an individual or a business. A crypto tax audit will also look at offshore crypto accounts, past cryptocurrency transactions, and other investments to compare revenue sources with your previous tax returns.

How can Crypto Tax Lawyer help in the case of a CRA cryptocurrency audit?

When you try to deal with the CRA alone, you run the risk of not being listened to. The auditor may find something in your records that does not immediately make sense, and they don’t want to hear your explanation.

Crypto Tax Lawyer has years of expertise dealing with CRA tax audits. We know how to communicate with the CRA. We will help you prepare necessary documents, avoid common mistakes, respond to the CRA, and avoid unnecessary penalties or allegations. Contact us today if you need representation during a crypt tax audit.

"These articles provide information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

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