Revenues are collected in Canada by the Canada Revenue Agency (Comparable to US IRS or the British HMRC) on the federal level. One of the largest concerns that governments have about cryptocurrencies is the collection of taxes.
If the blockchain does not allow the banks to report deposits and employers are not required to report Bitcoin transactions, tax revenue could shrink over time if Bitcoin’s share in overall financial transactions becomes significant.
CoinTelegraph has written recently that the CRA has ruled that Bitcoins must be reported and taxes paid on certain transactions under the Tax Act. The problem is however that neither the CRA nor another part of the government has released any guidelines for imposing, reporting or collecting taxes on Bitcoin transactions.
Aaron Vaithilingam of Quadriga CX told one interviewer at Georgia Straight:
“Just having one of these in your restaurant or venue, it’s going to bring in a lot of those younger, technical-savvy, future-thinking people. You want those kinds of people coming into your business because they might be good future customers. Having one of these in your business shows you’re advancing and progressive thinking.”
The release was announced by Vaithilingham at the Crypto Block Party at Vancouver’s Main Street festival on 15 June, 2014 in the presence of representatives from Decentral Bangtown, Newnote Financial Corp and the Bitcoin Co-op. The company said that it would be charging a 3% transaction fee on the Skyhook ATMs.
This amount will be split between the host business and Quadriga CX while users will be able to buy Bitcoins with Canadian dollars. Nevertheless, according to Vaithilingham, Skyhook’s stock is already fully controlled by Quadriga CX.
The first 30 machines at least will be installed for free to businesses in Vancouver and after that it is expected that new businesses will want to buy the $US 999 ATM machines for their business. Both the Lamassu and Skyhook units where showcased at the Block Party although the Lamassu was not working during the demonstration.
Prior to the announcement, Quadriga CX was the second company in the city to use a Bitcoin ATM in their offices as well as five other machines installed at other business locations.
But the latest decision to install 30 new units will not only expand their business but also bolster the Bitcoin-economy as well as raise awareness on the advantages of cryptocurrencies in the local community.