[2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam.

[gentlemand]

I've no idea what Canadian tax rules are but most places other than America should give you a tax free allowance.

And only this year and only in America have they made you admit to crypto involvement on your tax return.

My name amongst a load of mumbo jumbo that's several years old wouldn't make me sweat but I would've coughed up some tax if need be anyway.

[Harlot]

I don't see this as a bad thing for the users of QuadrigaCX. The company is just giving already known information from this users to a different department and even if they have found something like discrepancies in their earnings I don't think they can be used against them. For one the money is earned from that exchange is already lost and two they can't use evidence or even they found out something new with that information as evidence against you as it is inadmissible in the court of law. So really what I'm seeing now is either they are delaying the case or they are just throwing trash to their taxing department which isn't really new on court cases.

[squatter]

The article says Quardriga didn't keep any books. They're handing over the full database they have but that info might be garbled and meaningless.

QuadrigaCX may not have kept traditional books -- that were accessible to investigators anyway -- but they obviously kept a working database of user accounts and transactions. I assume their database can be pieced together by competent analysts. That's why they made this demand:

Following that, on Feb. 26, the CRA sent EY a seven-page production demand letter. The list of requests includes financial records and documents for tax years ended in 2016 to 2018, corporate legal records, and things like the platform’s raw database, files of AWS accounts, wallet addresses, fiat transaction records from payment processors, and so on.

The company is just giving already known information from this users to a different department and even if they have found something like discrepancies in their earnings I don't think they can be used against them.

Why is the CRA demanding this data if not to use it against QuadrigaCX customers? They are a tax agency. They aren't investigating the site owners or trying to help the victims. They are here to collect tax money.

[bbc.reporter]

I don't see this as a bad thing for the users of QuadrigaCX. The company is just giving already known information from this users to a different department and even if they have found something like discrepancies in their earnings I don't think they can be used against them. For one the money is earned from that exchange is already lost and two they can't use evidence or even they found out something new with that information as evidence against you as it is inadmissible in the court of law. So really what I'm seeing now is either they are delaying the case or they are just throwing trash to their taxing department which isn't really new on court cases.

This is the type of reaction that bring users in trouble, I reckon. It can and will be used against you. Also, whatever can go wrong, will go wrong. It will also not be the first time.

[Harlot]

~snip~

Why is the CRA demanding this data if not to use it against QuadrigaCX customers? They are a tax agency. They aren't investigating the site owners or trying to help the victims. They are here to collect tax money.

Like I said it's either a delaying tactic done by either them or the lawyers of QuadrigaCX and even if they will find something incriminating against them with the handed out information it will be rendered inadmissible in any kind of court since they can't use it as evidence against them in the first place. If they found some discrepancies with their earnings using that information I doubt the CRA would even have the power to do anything about that since the case is already about them recovering their lost capital.

This is the type of reaction that bring users in trouble, I reckon. It can and will be used against you. Also, whatever can go wrong, will go wrong. It will also not be the first time.

The users here really don't have any choice left since that information is something the CRA has asked for. Right now I wouldn't assume that this is something that they will be using against the customers and the CRA might even see something useful in the data to see some dirt against QuadrigaCX and not against their customers.

[squatter]

Why is the CRA demanding this data if not to use it against QuadrigaCX customers? They are a tax agency. They aren't investigating the site owners or trying to help the victims. They are here to collect tax money.

Like I said it's either a delaying tactic done by either them or the lawyers of QuadrigaCX and even if they will find something incriminating against them with the handed out information it will be rendered inadmissible in any kind of court since they can't use it as evidence against them in the first place.

Why would it be inadmissible? I don't know how things work in Canada, but it would certainly be admissible in US courts.

If they found some discrepancies with their earnings using that information I doubt the CRA would even have the power to do anything about that since the case is already about them recovering their lost capital.

The CRA has no interest in investigating the exchange's failure. That has nothing to do with their mission. They have an interest in establishing new cases against tax evaders. They are demanding the data because they plan to use it against QuadrigaCX's customers.

[bbc.reporter]

@Harlot. However, our attitude towards KYC should always to be careful. Many users are very open to upload personal documents to cryptocoin exchanges which many are not regulated. This attitude should not be.


@squatter. QuadrigaCX might be a part of a Canadian tax evasion syndicate hehehehe.