Canadian Tax Agency Collects $72M in Crypto Back Taxes, Struggles to Secure Criminal Charges

The Canada Revenue Agency has recovered over $72 million in unpaid taxes from cryptocurrency audits in the past three years. However, the agency has reportedly not laid any criminal charges since 2020.

High Non-Compliance Rates Among Crypto Users

The Canada Revenue Agency (CRA) has collected more than $72 million USD in unpaid taxes over the last three years from audits targeting cryptocurrency users, yet the agency has failed to lay any criminal charges since 2020, highlighting significant enforcement challenges in the anonymous digital asset space.

According to a report by The Canadian Press, the revenue was generated by the agency’s dedicated team of 35 “cryptoasset auditors,” who are currently working on more than 230 files. The CRA estimates that up to 40% of taxpayers using crypto platforms are either failing to file returns or are at high risk of non-compliance.

Court filings suggest the government’s efforts to fully rein in crypto-based tax evasion are being hampered by the borderless and pseudonymous nature of some of the cryptocurrencies. The Canadian government has previously expressed concern that taxpayers are using crypto assets to evade paying taxes.

Read more: Canada’s Tax Agency Targets $40M in Uncollected Crypto Taxes as Trudeau Seeks Major Capital Gains Hike

A senior CRA auditor, Predrag Mizdrak, acknowledged the inherent difficulty in a sworn affidavit: the CRA “believes there is no way to reliably identify taxpayers operating in the crypto space and assess compliance” with income tax reporting obligations.

Mizdrak’s affidavit points to “significant non-compliance,” noting that approximately 15% of Canadian crypto users have not filed their taxes at all, and 30% of filers are categorized as high-risk for non-compliance.

“The use of cryptoassets greatly expanded during the COVID-19 pandemic,” Mizdrak stated. “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.”

Court Order Targets Dapper Labs Users

To overcome this challenge, the CRA successfully petitioned the Federal Court for an order to unmask the identities of clients of Vancouver-based non-fungible token (NFT) pioneer Dapper Labs, which runs its own blockchain and crypto wallets. The order, known as an “unnamed persons requirement,” reportedly mandates the disclosure of customer data to help the CRA verify tax compliance. This marks only the second time a Canadian court has granted such an order against a crypto firm.

While the CRA initially sought information on Dapper’s top 18,000 users, negotiations with the company’s lawyers reduced the scope of the order to 2,500 users. Dapper Labs did not oppose the probe, and companies targeted by such orders are not accused of wrongdoing, The Canadian Press report notes.

Despite the millions recovered through civil audits, the lack of criminal charges remains a notable gap. The CRA confirmed it has initiated five criminal investigations with a “digital asset component” since 2020, with four still ongoing as of March 2025.

The agency attributed the delays to the complexity of digital asset cases:

“The CRA’s criminal investigations are complex and often require years to complete,” the agency is quoted as saying. “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.”

FAQ ❓

• How much has the CRA collected from crypto audits? Over $72 million USD in unpaid taxes since 2022.
• Why are criminal charges lacking in Canada? No charges have been laid since 2020 due to complex investigations.
• What steps is the CRA taking to enforce compliance? It secured a Federal Court order to unmask 2,500 Dapper Labs users.
• How widespread is crypto tax non-compliance in Canada? About 15% of users filed nothing, while 30% are high‑risk filers.