Basically the Canadian Govt. has wiped their hands of Bitcoin, saying it isn't currency.
All they want is their piece if it is used to cash out or make a purchase.
So if you buy something online, they expect the appropriate taxes to be levied by the online retailer, or upon entry to the country at customs.
"When bitcoins are bought or sold like a commodity, any resulting gains or losses could be income or capital for the taxpayer depending on the specific facts," ruled the CRA.
That section is covered in paragraphs nine through 32 of the CRA's section IT-479R, Transactions in Securities, "which provide general comments for purposes of determining whether transactions are income or capital in nature."
So if you bought $100 worth of BTC and it's currently worth $200, you don't pay anything.
However if you cashed it out at $200, THEN you would have to pay income tax on the $100 you made.
If you had taken that extra $100, and reinvested it in bitcoin, buying $200 worth of bitcoin from that initial "win" off the $100 buy-in plus the initial $100, then the value goes up to $300, then you have to pay taxes on the $100 gain. So in the end, you pay taxes on $200 because that is how much you "made."
So, CRA only cares if you cash out, and they consider the income to be capital if you're trading and income if you're mining.
End of story... for now.
Harper and other Governments are afraid of Bitcoin. Must be bankers whispering in their ears.http://business.financialpost.com/2014/02/11/federal-budget-2014-puts-bitcoin-in-cross-hairs-with-new-anti-money-laundering-regulations-for-virtual-currencies/