Canadian Tax Authority is seeking assistance from the country’s court against Coinsquare – a crypto exchange firm. It wants to obtain information and data of customers of Coinsquare from the day the exchange had started its operations. Coinsquare currently has more than 200,000 users from all across Canada.
A news report confirmed that the Canadian Tax Authority had asked Coinsquare to provide data relating to its customers. Coinsquare, which is a crypto-exchange headquartered in Canada, currently has more than 200,000 local customers. The exchange was asked by the Tax Authority to collect the required information from the day it had initiated its operations.
Coinsquare had initiated its operations in Canada in the year 2013 and had been asked to provide the information since then. The news however reported that Coinsquare had not responded positively to the request of the Tax Authority. Instead, it had remained quiet.
An official of the exchange told that the exchange is not allowed to give information about its customers to anyone.
The information was required on the pretext of fighting against the elements of tax fraud in Canada. Canada Revenue Agency (CRA) had told that the information is necessary for ensuring compliance with the country’s tax laws.
Earlier in 2018, CRA had developed an internal dedicated unit for crypto-exchanges to keep a close eye on the country’s crypto exchanges. However, in a press statement last year, CRA had indicated huge concerns over the increased use of crypto-exchanges. It told that exchanges had increasingly been used as a tool for cross-border transactions with the intent of evading tax.
Meanwhile, in the US also, the Internal Revenue Service (IRS) had also sought similar information from US-based crypto-exchanges. But the exchanges refused to do so and the IRS had to move to the Court for obtaining necessary directions.
Similarly, CRA had filed a case before the country’s Court. CRA had prayed to the Court to pass directions against Coinsquare to handover the required data to CRA.
Meanwhile, Stacy Hoisak, CEO of the exchange told that the exchange’s SOPs do not allow handing over its customers’ information to anyone. She also told that the exchange is looking at the possibility of taking the matter before a court of law.