Canada Revenue Agency Recovers 72 Million from Crypto Audits Amid High Non-Compliance Rates

The Canada Revenue Agency CRA has successfully recovered over 72 million USD in unpaid taxes from cryptocurrency audits in the past three years. However, the agency has not filed any criminal charges since 2020, indicating significant challenges in enforcing tax compliance in the cryptocurrency sector.
A report by The Canadian Press reveals that the CRA s 35 dedicated cryptoasset auditors are currently handling more than 230 cases. The agency estimates that up to 40 of taxpayers using crypto platforms either fail to file their returns or are at a high risk of non-compliance. This situation is exacerbated by the borderless and pseudonymous nature of some cryptocurrencies, which complicates the government s efforts to combat tax evasion.
Predrag Mizdrak, a senior CRA auditor, acknowledged the difficulties in identifying crypto users and assessing their compliance with income tax reporting obligations. He noted that approximately 15 of Canadian crypto users have not filed their taxes at all, and 30 of those who do file are considered high-risk for non-compliance. Mizdrak stated,
The use of cryptoassets greatly expanded during the COVID-19 pandemic. This has created additional compliance challenges for the CRA due to the built-in anonymity within the crypto space, the volume of transactions, and the ease of setting up accounts on many cryptoasset platforms across borders.
To address these challenges, the CRA obtained a Federal Court order to reveal the identities of clients of Dapper Labs, a Vancouver-based non-fungible token NFT pioneer. This order, known as an unnamed persons requirement, mandates the disclosure of customer data to assist the CRA in verifying tax compliance. Initially seeking information on Dapper s top 18,000 users, the CRA eventually narrowed the request to 2,500 users after negotiations with the company s lawyers.
Despite recovering millions through civil audits, the absence of criminal charges remains a significant issue. The CRA has initiated five criminal investigations involving digital assets since 2020, with four still ongoing as of March 2025. The agency attributed the delays to the complexity of digital asset cases, stating,
The CRA s criminal investigations are complex and often require years to complete. The length of time required to investigate will be dependent on the complexity, number of individuals involved, availability of evidence, international requests for assistance, and level of co-operation of witnesses with a view to determine whether criminal charges are warranted.