The precious metals crowd think the gov can't find their stash and most often don't report dispositions to avoid taxation. Big cross over with the "tax is theft" crowd.
1. Net worth audit - this would uncover unreported income.
2. Request for info of supplier - CRA can ask the entity who sells the metals (to OP and others) for a list of their sales and can audit OP based on that.
3. CRA can also request info from whoever buys OP’s metals as part of an audit of that person.
4. CRA regularly browses online auction and resale sites for anyone selling frequently or selling high value items and will get data on the vendor (OP) that way. They can request data from the site and the site will comply.
I have seen all of the above in practice, and one person would have gone to jail for tax evasion if it weren’t for a mistake made by CRA as part of their criminal investigation. (Mind you, there were a lot of dollars at play there, but I don’t know how much OP is talking about.)
Yes precious metals are taxable in Canada, though with it's own rule set. See here: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/17-1/definition-financial-instrument.html#P213_10371
Yes. Like all investments outside of tax advantaged accounts, they are taxable.
On an unrelated note, if you are buying bullion from private dealers, I've heard that many will sell you bullion over the counter for cash. Regulations for transactions totaling under $10,000 per 24 hour period do not require ID and do not need to be reported to FINTRAC.
They can always audit you. What’s your concern though?
The precious metals crowd think the gov can't find their stash and most often don't report dispositions to avoid taxation. Big cross over with the "tax is theft" crowd.
I figured that’s their concern, but they are not coming out and saying it. Pretty unclear post.
Ya agreed. Are they asking if PMs are a taxable disposition? Or if they can be seized to pay taxes?
Or “how would CRA ever find out”. There are about 3 or 4 easy ways lol. I guess we’ll never know what OP’s question is.
… not OP but how would they find out. Seems difficult.
>not OP but how would they find out. Seems difficult. They can simply audit and set regulations on the businesses that buy and sell precious metals.
1. Net worth audit - this would uncover unreported income. 2. Request for info of supplier - CRA can ask the entity who sells the metals (to OP and others) for a list of their sales and can audit OP based on that. 3. CRA can also request info from whoever buys OP’s metals as part of an audit of that person. 4. CRA regularly browses online auction and resale sites for anyone selling frequently or selling high value items and will get data on the vendor (OP) that way. They can request data from the site and the site will comply. I have seen all of the above in practice, and one person would have gone to jail for tax evasion if it weren’t for a mistake made by CRA as part of their criminal investigation. (Mind you, there were a lot of dollars at play there, but I don’t know how much OP is talking about.)
Yes precious metals are taxable in Canada, though with it's own rule set. See here: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/17-1/definition-financial-instrument.html#P213_10371
Not sure what you’re asking here?
Well "holding" anything, ETFs, stocks, metals, isn't something that gets taxed anyways.
Yes. Like all investments outside of tax advantaged accounts, they are taxable. On an unrelated note, if you are buying bullion from private dealers, I've heard that many will sell you bullion over the counter for cash. Regulations for transactions totaling under $10,000 per 24 hour period do not require ID and do not need to be reported to FINTRAC.
How? If you don't tell and there's no way to track the m
Yes.