Canada Secures Information on 2,500 Dapper Labs Users in Second Cryptocurrency Tax Investigation

Court documents obtained by the Canadian News Agency show that over the past three years, Canada's tax authorities have collected more than 100 million Canadian dollars (about 72 million U.S. dollars) in taxes through cryptocurrency-related audits, but no criminal charges have been filed since 2020, revealing structural limitations in the country's law enforcement capabilities.
The Canada Revenue Agency's audit team has processed more than 230 files and estimates that 40 per cent of taxpayers who use cryptocurrency platforms do not file taxes or are at high risk of non-compliance, although the Canada Revenue Agency believes that "taxpayers in the cryptocurrency space cannot be reliably identified and assessed for income tax compliance." In addition, the report states that the Canada Revenue Agency has obtained data from 2,500 users of Dapper Labs through a court order. The Canada Revenue Agency initially sought information on Dapper's top 18,000 users, which was eventually determined to be 2,500 after negotiations with the company's executives and lawyers. The Canada Revenue Agency's application to the federal court in September is the second time a court has ordered a Canadian cryptocurrency company to disclose such information, following a similar order to Toronto exchange Coinsquare in 2020.