Bitcoin is considered specific foreign property according to the Canadian Revenue Agency

Regulation | July 27, 2015 By:

According to the Canadian Revenue Agency bitcoin and other digital currencies are considered specific foreign properties and are to be treated as foreign funds or intangible properties stated in section 233.3 of the Income Tax Act.

The rules of the Income Tax Act document states that foreign properties including bitcoin that exceeds the value of $100,000 CDN should be reported with a tax form called T11135 to notify the amount of bitcoin held by an individual or an organization.

In the Canadian Revenue Agency Document No. 2014-0561061E5 “Specified Foreign Property,” the CRA states that digital currencies including bitcoin and other cryptocurrencies are considered as foreign funds if they are held or deposited outside of Canada and if they are not used in an active business.

The Canada Revenue Agency (CRA) administers tax laws for the Government of Canada and for most provinces and territories, and administers various social and economic benefit and incentive programs delivered through the tax system.