The payout will depend on what other debt exists and how it’s structured. There are priorities when it comes to how things get paid out, the lower you are on the totem pole the lower the chance of payment.
Well, given what we have heard about how things have been run there they are likely to be a major creditor and will get a list of creditors as part of the liquidation proceedings anyway. Whenever I deal with these things for clients it is often quite amusing for them to see which of their competitors have got badly burned.
>Canada Revenue Agency is probably going to audit everyone who shows up on that list
If they are going to list the details of the victims, you're not going to pay tax on money that Quadriga stole since that isn't realized income. Unless you deliberately fudge your capital losses to be more than reported on that list, then yes they will audit your reported capital losses.
No, I think what they are going to do is initially contact everyone with a balance on the exchange to politely ask if there is anything they need to tell them.
We had something similar over here a while back, when our tax authorities started getting lists of residents with foreign bank accounts. A lot of them were caught bang to rights of course, hiding income and assets abroad, but a client of mine also got the letter. He had a holiday home in another European country, and so had a Euro bank account there just so he could pay his household bills. We said "no, nothing to see here", and we then had to answer a whole series of VERY detailed questions to prove it. The simplest solution for us was just to let them have a copy of his bank statements, but the point is once tax investigators get their teeth in they tend not to let go easily.
Also - just because you lost money doesn't mean there isn't tax to pay:
1. Made money on Bitcoin, cashed out, then lost the cash in the insolvency? Capital gains to pay on your coinz, probably no tax relief available for having your cash stolen.
2. Made money trading in earlier years and didn't declare it? Every historic trade was taxable, and the fact you have now lost your coinz doesn't mean you will be able to carry that loss back and get tax relief against tax you should have paid in earlier years.
Im meaning going back to see if they actually declared any taxes on gains at any point in time and whether they were under reporting their gains. You forget that the CRA can legally review anyone's last 3 years of tax records during a regular audit and can go back further if they find signs of fraud
During the claims process claimants will have to make their transaction history available to the court to asses the validity of the claims. Its not going to be as simple as "I have XXX balance please pay me", they will want to see how the money came in and out of the account.
Don't think they are going to have a choice. From what I can see the initial list will probably be published based on the information in the exchange database, with the formal claim process a "tidying up" exercise later. Remember this isn't a full-blown liquidation yet; this is one of the requirements of the CCCA, presumably so everyone who is being stopped from making a claim knows exactly what is going on at an early stage. Bear in mind also that the legislation is designed to work for normal businesses, where transparency is generally regarded as a good thing,
As an aside: I would LOVE to be a fly on the wall at the creditors meeting. Can you imagine butters interacting with experienced insolvency practitioners who deal with real businesses every day and who actually understand finance ...
> Can you imagine butters interacting with experienced insolvency practitioners who deal with real businesses every day and who actually understand finance ...
ROFL. It will probably be like the 'electrolytes' scene in idiocracy. "*You speak like a fag*" lol
This was in the US, but I was a creditor in a bankruptcy case and the trustee was pretty cool and understanding with accepting my claim. I don’t think the reckoning you’re hoping for is coming with this, they’re literally paid to talk to normal confused dipshits.
(a) except as otherwise ordered by the court, when an order is made on the initial application in respect of a debtor company,
(i) publish, without delay after the order is made, once a week for two consecutive weeks, or as otherwise directed by the court, in one or more newspapers in Canada specified by the court, a notice containing the prescribed information, and
(ii) within five days after the day on which the order is made,
(A) make the order publicly available in the prescribed manner,
(B) send, in the prescribed manner, a notice to every known creditor who has a claim against the company of more than $1,000 advising them that the order is publicly available, and
(C) prepare a list, showing the names and addresses of those creditors and the estimated amounts of those claims, and make it publicly available in the prescribed manner;