I don't know the specific case of Canada but I'm sure it happens like in most of the world: the moment you use bitcoin to buy something else, be it cryto, gold or whatever is a taxable event. It does not happen like in investment funds in some countries that you can make transfers without paying taxes until you convert the funds to money.

You can invest in bitcoin on a non custodial wallet, hold it for years and you will earn from it without paying anyone tax to either maintain the wallet you're using or the unit of account for your asset value as the banks do charges for maintenance.


If you're going to opt in for trades, then you are likely to make use of the centralized exchanges in doing that and there is no how you can manage to escaped being taxed from these exchanges, what you should considered is the rate you're being charged, which i think should be more affordable for you than not, except you're not going or make use of a centralized exchange for trade or avoid trading at all.

Let's say someone earn Bitcoin whether it's from giveaway, freelance or jobs, it might be not a taxable event when you directly spend it (no capital gains since you use Bitcoin as a currency). But you still need to pay income tax because it's one source of your incomes.

Although it will decrease the tax you need to pay, but it's not a way to completely avoid paying tax.

I think the approach is simple because every country wants income from all fronts including the most in the lyrics now. Well. It's simple, if you don't want to deal with the name, tax, just ignore it if your exchange asks to complete the data. It's just that exchanges sometimes make deductions in usually every transaction we make whether you are trading, staking or other always triggers a tax event and that applies if someone's investment is considered to be making a profit.

So what happens when you earn some Bitcoin online without buying it and then cash out?

It is still taxable event only if you will declare it to your ITR filing since its you who earned that online. Minus the VAT (tax) you get when cashing out only using a centralized platform (if available), but except when using P2P or decentralized free of charge platform.

if you use the exemptions in the tax law.. via researching and learning the tax law. even if the taxman is always looking. he cant do anything if your using their laws against them

tax avoidance(legal) is using their law exemptions(such as loans are non taxible)
tax evasion(illegal) is trying to play dumb, ignore laws and hide which is where you will get caught and cant escape

learn/research the difference

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the method is about HOW you "cash out"
learn the exemptions

the masters/elites at tax avoidance(legal) dont just 'cash out'

take elon for instance he didnt cash out his shares to then buy twitter.. he loaned shares to a private bank. the bank loaned him cash. thus tax free to then use that cash to buy twitter. without getting hit by a huge % tax bill for cash

bitcoiners can set up services where by:
people hand over bitcoin and get cash
BUT structured:
they hand over bitcoin as collateral for a loan
the 'buyer' acts as a loan giver of cash. and then claims the collateral as settlement of the loan

in short its still the same end result as giving bitcoin to get cash. but on paper structured in a way that its treated as loans

speak to a tax accountant/specialist for better way to structure it in ways that meet the tax exemption rule. i just dumbed it down for basic understanding

I guess that you are talking about capital gains tax. AFAIK, buying Bitcoin/crypto isn't a taxable event. Selling BTC/crypto is a taxable event(if you sold at a higher price than you bought). If you are seeking advice about how to conduct tax evasion, then this forum isn't the right place.
Just find a tax accountant in your country and ask him. The other solution is to just move to another country with liberal tax laws and less taxes, or use offshore companies that are registered in "tax heaven" jurisdictions. I live in a country, where there's no capital gains tax, so I'm pretty much OK with my crypto holdings here. I don't know if this is going to change in the future, though.

You're merely talking about something else. Sure I will do the research, and sure an individual might have exemptions, but nothing from what you posted has changed the fact that the TaxMan is always looking and has always found reasons to tax you more. No one escapes the IRS, and every "exemption" you find, they will mark that as a "red flag" like how they marked something like cold-storage a "red flag".