Canada obtains information on 2,500 Dapper Labs users in second cryptocurrency tax investigation

PANews, December 8—According to The Block, court documents obtained by the Canadian Press show that over the past three years, Canada’s tax authorities have collected more than 100 million Canadian dollars (approximately $72 million USD) in taxes through cryptocurrency-related audits. However, no criminal charges have been filed since 2020, revealing structural limitations in the country’s enforcement capabilities. The Canada Revenue Agency’s audit team has handled more than 230 files and estimates that 40% of taxpayers using cryptocurrency platforms either failed to report taxes or are at high risk of non-compliance. However, the agency believes it is “unable to reliably identify taxpayers in the cryptocurrency sector and assess their income tax compliance.”

Additionally, the report states that the Canada Revenue Agency has obtained data on 2,500 users from Dapper Labs through a court order. The agency initially sought information on Dapper’s top 18,000 users, but after negotiations with company executives and lawyers, the number was finalized at 2,500. The Canada Revenue Agency’s application to the federal court in September marked the second time a Canadian court has ordered a cryptocurrency company to disclose such information, following a similar order issued to Toronto-based exchange Coinsquare in 2020.