Voluntary Disclosures for Crypto Taxes

Unreported or misreported cryptocurrency income can expose individuals and businesses to severe tax penalties, interest, and potential prosecution. The CRA’s blockchain forensics capabilities have expanded significantly, with increasing cooperation from exchanges, payment processors, and foreign tax authorities. Fortunately, Canada’s Voluntary Disclosures Program ("VDP") allows taxpayers to correct past crypto reporting issues before enforcement begins — often eliminating penalties and reducing interest.

Our Approach

At Solstice Law, we guide clients through the voluntary disclosure process with precision and confidentiality. We combine deep tax-procedure expertise with crypto-specific knowledge to ensure that your disclosure is complete, compliant, and strategically timed to maximize relief.

Our Expertise

• Eligibility and strategy assessment – Determining whether your situation qualifies for CRA’s VDP and selecting the optimal disclosure category (general or limited) to secure penalty relief.

• Reconstruction of crypto activity – Collaborating with accountants and forensic blockchain analysts to rebuild historical transaction records across wallets, exchanges, DeFi protocols, and staking platforms.

• Valuation and gain/loss reconciliation – Ensuring the fair-market value of each token or NFT is properly documented at the time of disposition or receipt.

• Preparation of disclosure package – Drafting and submitting voluntary disclosure letters, amended returns, and supporting schedules that address both income tax and GST/HST implications.

• CRA liaison and resolution – Acting as your representative throughout the CRA review process, ensuring clear communication, compliance confirmation, and confidentiality protection.

  
  

Why Founders and Investors Choose Us

We are one of the only Canadian law firms dedicated exclusively to crypto-related tax compliance, audits, and dispute resolution. Whether you are an individual trader, protocol founder, Bitcoin ATM operator, DeFi participant, miner, or are otherwise involved in the digital asset space, we help you rectify past non-compliance with minimal risk — and position your structure for ongoing transparency and future audits.