Canada on Tax Treaties

When a taxpayer ceases to be a Canadian tax resident, paragraph 128.1(4)(b) of Canada's Income Tax Act deems the taxpayer to have disposed of almost all property (including cryptocurrency, non-fungible tokens (NFTs), and other digital assets) at fair market value.

The trend of digitizing tax-related information provides taxing authorities around the world an invaluable opportunity to exchange information.

As the world becomes increasingly interconnected and tax laws become more onerous, tax authorities around the world, including the Canada Revenue Agency (CRA), are highly motivated to collect taxes from taxpayers with foreign assets.