Crypto Tax Audits & Dispute Resolution

At Solstice Law, we combine deep tax-law expertise with a nuanced understanding of blockchain technology to help clients navigate, defend, and resolve CRA cryptocurrency audits before they escalate into litigation. From individual traders to large Bitcoin ATM networks and blockchain protocols, we’ve successfully helped clients save millions in tax, interest, and penalties.

Our Approach

We take a strategic, audit-resolution-first approach — grounded in both the technical and procedural aspects of Canadian tax law and the complex realities of digital-asset transactions. We believe most disputes can be resolved well before tax court through proactive engagement, clear documentation, and intelligent negotiation.

Our Expertise

• Comprehensive audit representation – Acting as primary counsel in CRA audits involving trading activity, misclassification of business income and capital gains, staking, token vesting, NFTs, and cross-border exchange operations.

• Bitcoin ATM and protocol audits – Advising on GST/HST treatment, imported taxable supplies, financial service exemptions, and digital-currency flow tracing.

• Complex valuation and record reconstruction – Working with forensic accountants and blockchain analytics teams to reconstruct transactional histories across exchanges, wallets, and DeFi protocols.

• Audit strategy and defense – Responding to CRA questionnaires, voluntary disclosures, and reassessments with a focus on minimizing exposure, penalties, and reputational risk.

  
  

Collaborative, Tax-Driven Representation

We work closely with crypto-focused accountants, valuation experts, and forensic investigators to ensure every element of your audit response — from wallet tracing to tax characterization — is complete and defensible. This collaboration allows us to deliver audit-ready documentation and tax-optimized resolutions that withstand CRA scrutiny.

Why Clients Choose Solstice Law

We are one of the only firms in Canada dedicated exclusively to cryptocurrency tax controversy and audit defense. Clients choose us for our practical, out-of-the-box strategies, our deep understanding of both CRA audit procedures and Tax Court litigation, and our ability to translate complex blockchain activity into clear, compliant tax positions.