Canada Revenue Agency Audits Corporate Tax returns filed by Quadrigacx
The Canada Revenue Agency (CRA) is auditing the corporate tax returns filed by QuadrigaCX a now-defunct Canadian cryptocurrency exchange.
An article by the Globe and Mail on September 16th shows that QuadrigaCX is now being audited by the CRA which has requested the tax returns from October 1st, 2015, to September 30th, 2018.
The Canadian exchange has been on the news since its CEO, Gerald Cotten, was declared dead in India without ever revealing the passwords to access the company’s cryptocurrency reserves.
EY, Bankruptcy trustee, which oversees the exchange’s insolvency proceedings, said that the CRA’s request for documents and information is significant, stating:
“The Trustee intends to discuss the request for information with CRA Audit and their counsel and will return to Court for further direction, if necessary.”
The bankruptcy trustee said responding to all of the information requests from various law enforcement agencies and regulators will have a direct effect on how much money is available to repay QuadrigaCX’s 115,000 creditors. EY has admitted that there is no legal basis for it to refuse to respond to these requests. EY states:
“Accordingly, the Trustee is focused on conducting its document collection, organization, review and production efforts in as cost effective a manner as possible […] it is not expected that the Trustee will be in a position to respond to the CRA Audit request at this time.”