BREAKING Ontario's 'crypto king' Aiden Pleterski arrested
Aiden Pleterski, the self-proclaimed 'crypto king' from Whitby, Ont., has been arrested in Durham Region after allegedly running a Ponzi scheme worth more than $40 million.
Digital currencies have taken the world by storm. Where Bitcoin has become a household name, others such as Ethereum, Litecoin, Polkadot and Dogecoin are all growing rapidly.
If you aren't trading in a digital currency, it is my bet you know someone who is. In fact, the popularity has grown to such an extent the Canada Revenue Agency is watching very closely.
Not only are they watching, they want their fair share of tax revenues and that means it could prove very costly if you fail to disclose.
Here is the most important thing you need to know: CRA doesn't consider cryptocurrency to be a currency at all, it is treated more like a commodity akin to gold and silver.
If you have been buying or selling cryptocurrencies this past year – whether trading, gifting, receiving or even making donations -- you need to understand the tax consequences. This is especially true if you are trading crypto like a commodity to turn a fast profit, because those types of transactions would be treated as business gains or losses.
Here is an example:
If you purchased $3,000 in Bitcoin and then sold it two months later for $15,000, that would be considered business income of $12,000. In that case, you would need to also include a business statement with their personal tax return.
If you under report or omit reporting that income, CRA could impose a penalty of $100 or 50 per cent of the understated taxes, whichever is greater. Of course, that’s in addition to the taxes owed.
If you purchase a digital currency for a long-term investment, any increase in value would be treated as a capital gain. However, any losses can only be used to offset gains you are reporting.
You might decide to roll the dice and hope to escape scrutiny. But you need to know, you just might get caught.
According to H&R Block, in 2021 the CRA won a court battle to obtain customer data from cryptocurrency trading platform Coinsquare, including the names and details of all active and inactive customer accounts. In addition, the CRA now co-ordinates exchanges in some capacity with others to track the movement of digital assets.
Simply owning cryptocurrencies isn't taxable; it all comes down to what you do with it. CRA is rapidly getting up to speed and utilizing the resources it needs to ensure you pay your fair share on money owed.
To be fair, this is likely a work in progress and just because you may not be audited this year, please don't assume you are getting a free pass. I would ensure my records are kept up to date and accurate, and all documentation is stored for six years after the tax year they relate to as this data could be requested at any time if you are audited.
If you find yourself in a position where you have been offside and have avoided paying tax, now might be the time to make a voluntary disclosure.
Like CRA, digital currencies are here to stay, so once again I will say it is better to be onside and above board, or the penalties could be onerous.
Aiden Pleterski, the self-proclaimed 'crypto king' from Whitby, Ont., has been arrested in Durham Region after allegedly running a Ponzi scheme worth more than $40 million.
Slovakia's populist Prime Minister Robert Fico is in life-threatening condition after being wounded in a shooting after a political event Wednesday afternoon, according to his Facebook profile.
Halifax Regional Police believe a non-resident could be responsible for the infamous drugging of numerous crew members of the 'Titanic' movie with a hallucinogenic in 1996.
Regaining your focus requires you to be mindful of how you are using technology -- a daunting task if you consider the average American spends at least 10 hours a day on screens.
The first time Marcelle Hutchins sat down to meditate, she put on a guided session, relaxed her shoulders and tried to close her eyes. She lasted two minutes.
A Quebec judge rejected McGill University's request for an injunction to remove the pro-Palestinian encampment on the university's campus in downtown Montreal.
The federal government says it has reached a deal with Canadian National Railway Company to acquire the historic Quebec Bridge.
Several news conferences will be held Wednesday morning to update the public on the wildfire situation in Alberta, specifically near Fort McMurray where four neighbourhoods have been evacuated.
A new COVID-19 subvariant is dominant in Canada, representing just over 30 per cent of cases in the country, but infectious disease experts say there’s no sign it’ll evolve into a summer 'scarient.'
When Adam Kirschner wrote 'Slap Shot,' he never imagined the song would be embraced by his favourite team.
A team is ready to help an entangled North Atlantic right whale in the Gulf of St. Lawrence.
A $200 reward is being offered by a North Vancouver family for the safe return of their beloved chicken, Snowflake.
Two daughters and a mother were reunited online 40 years later thanks to a DNA kit and a Zoom connection despite living on three separate continents and speaking different languages.
Mother's Day can be a difficult occasion for those who have lost or are estranged from their mom.
YES Theatre Young Company opened its acclaimed kids’ show, One Small Step, at Sudbury Theatre Centre on Saturday.
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
A Listowel, Ont. man, drafted by the Hamilton Tigercats last week, is also getting looks from the NFL, despite only playing 27 games of football in his life.