Canadian Tax Authority Probing QuadrigaCX for Corporate Tax Returns

Canadian Revenue Agency (CRA) has initiated an audit of the corporate tax returns on the doomed crypto exchange , the bankruptcy trustee of the exchange revealed.
First reported by The Globe and Mail on Monday, the Canadian tax authority is looking into the tax returns of the defunct exchange between October 1, 2015, to September 30, 2018.

“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 court-appointed bankruptcy trustee Ernst & Young, stated.
A long wait for the creditors
The Canadian crypto exchange came into limelight after the unexpected death of its 30-year-old CEO Gerald Cotten in December last year. The deceased head of the exchange did not create any backup to recover the password of the exchange’s stored digital asset, resulting in the lockdown of millions worth of cryptocurrencies.
As with court’s involvement, the process of recovering the funds, most of which belonged to clients, was initiated earlier this year, the trustee found that the deceased CEO has transferred a significant amount of customers’ funds to his personal accounts and even with them.
“Accordingly, the Trustee is focused on conducting its document collection, organization, review and production efforts in as cost effective a manner as possible,” Ernst & Young added. “It is not expected that the Trustee will be in a position to respond to the CRA Audit request at this time.”
The audit firm also revealed that with information requests from agencies like this will also to the 115,000 creditors of the doomed exchange. However, there is no legal ground to refuse the requests of these government agencies.
Along with the CRA, agencies like the RCMP, the Ontario Securities Commission and the US Federal Bureau of Investigation are also investigating into the exchange’s collapse.
“The Trustee proposes to produce any requested Devices only to the RCMP pursuant to a Production Demand, if granted, and to refer any other law enforcement agencies and / or regulators requesting access to the devices to the RCMP,” EY added.

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