Canadian governmental guidance is just as vague (for a layman) as IRS guidance. Broadly speaking, the government issued a statement saying that digital currencies are taxable. Exactly how they're going to be characterized (income vs. capital gains) is the key question for many people.
Reading both the digital currency fact sheet linked and the referenced Canada Income Tax Act[1] doesn't give a clear indication of how bitcoins will be characterized.
Back taxes, penalties and accrued interest are nasty surprises to be receiving down the road. Whether the amounts in question are modest or large, it's never fun to be on the receiving end. Unfortunately, I speak from experience. The age-old issue is brought to the forefront here where taxdollars pay for income tax agencies to pursue you and prove your innocence. Given that audits are supposedly a small percentage of the overall tax-filing population, once you are selected or flagged, the onus is on the filer to substantiate all claims and characterizations, and hope that the tax agencies concur.
Reading both the digital currency fact sheet linked and the referenced Canada Income Tax Act[1] doesn't give a clear indication of how bitcoins will be characterized.
Back taxes, penalties and accrued interest are nasty surprises to be receiving down the road. Whether the amounts in question are modest or large, it's never fun to be on the receiving end. Unfortunately, I speak from experience. The age-old issue is brought to the forefront here where taxdollars pay for income tax agencies to pursue you and prove your innocence. Given that audits are supposedly a small percentage of the overall tax-filing population, once you are selected or flagged, the onus is on the filer to substantiate all claims and characterizations, and hope that the tax agencies concur.
[1] http://www.cra-arc.gc.ca/E/pub/tp/it479r/README.html