Not very practical way of generating reasonable proof to submit to the government
They don't understand the complexities of the tax filing for Canadian citizens, especially for those who newly became resident. I think they deal with more US citizen cases. They overly focused on a method/scenario of proving the amount of crypto owned that probably doesn't really work when submitting documentation to the government. If you don't think you will be audited, you can use their report. In my case, I have been through some cases where I have been audited, and I know that this wo'nt work. I thought I would see what method they had to assess if it would be useful for me but it didn't seem that useful. They are not going to go into your crypto databases.
I ended up going back to my own calculations and figuring it out myself
Reply from CountDeFi
Hi Joanne,
Thank you for taking the time to share your feedback. I’d like to take a moment to address your concerns in detail.
1. Understanding of Canadian Tax Filing Complexities
We have assisted numerous Canadian residents with their crypto tax reports, all of which have successfully passed CRA inspections. The Canadian tax system can indeed be complex—especially for new residents—and we completely understand that it takes time to adapt. Our team is well-versed in these nuances and ensures that each report meets the necessary standards for compliance and accuracy.
2. Approach to Proving Crypto Ownership and Cost Basis
Establishing and substantiating cost bases accurately is critical for compliance and audit readiness. This is why we follow a rigorous 7-phase process to ensure every report is defensible under review. I noted from your file that there was some frustration around our request for complete data. You had asked that we exclude certain exchanges, as you felt they were not important. However, every data source is vital—transfers between wallets and exchanges directly affect the cost basis and future taxable gains.
3. Data Source Inclusion and Report Integrity
To produce accurate reports, we reconcile all transactions across all data sources. You specifically requested that certain data be excluded, and our team advised against this, explaining the potential implications. As they wrote to you:
“We would advise you to include this as the transfers will be treated as disposals and will create taxable events. Excluding this data will also break the cost basis chain, impacting gains. This could raise questions from the tax authorities, and if the transactions are not included, this would need to be explained by you, as we cannot vouch for the accuracy of the report if the data is incomplete.”
We are committed to producing high-quality, accurate, and tax-efficient crypto tax reports. To maintain this standard, we cannot compromise on data completeness or accuracy at a client’s request.
We wish you all the best going forward and remain available should you decide to rely on professional crypto tax reporting support in the future.
Kind regards,
CountDeFi Team
