Legal Disclaimer
Last updated: April 2025
Not Tax Advice
ArcanTax is a calculation tool. Nothing produced by ArcanTax — including reports, gain/loss calculations, tax estimates, or jurisdiction-specific outputs — constitutes tax advice, legal advice, financial advice, or accounting services.
The outputs of ArcanTax are informational only. They are a starting point for discussion with a qualified tax professional, not a final answer.
Not a Registered Professional Service
ArcanTax is not operated by, affiliated with, or endorsed by any registered tax authority, accounting body, or financial regulator. ArcanTax is not a Certified Public Accountant (CPA), Chartered Accountant (CA), Tax Agent, or any equivalent regulated professional in any jurisdiction.
Tax Law Changes
Cryptocurrency taxation is a rapidly evolving area. Rules change with new legislation, regulatory guidance, and court decisions. ArcanTax maintains versioned tax rules and displays the verification date on every report. However, you must verify that the rules used in your report are current before filing.
Notable areas of active change include:
- US: Wash sale rule application to crypto — currently does not apply but legislation is pending
- US: Form 1099-DA broker reporting requirements (effective 2025)
- Canada: Capital gains inclusion rate changes (2024 Budget)
- UK: Annual CGT exemption has been significantly reduced in recent years
- EU: MiCA regulations may introduce new reporting obligations
Accuracy of Input Data
ArcanTax calculates based entirely on the data you provide. If your CSV is incomplete, contains errors, missing transactions, or incorrect prices, the output will be inaccurate. Common issues include:
- Missing purchase history for assets received before records began
- Transfers between own wallets treated as taxable events
- DeFi transactions not captured in exchange CSVs
- Staking rewards, airdrops, or forks not reflected in exported data
Jurisdiction-Specific Risks
United States: IRS guidance on crypto continues to evolve. Consult IRS Publication 544, 550, and Rev. Rul. 2023-14 for current official positions.
Canada: The distinction between business income and capital gains in crypto is fact-specific. CRA may classify active traders differently.
United Kingdom: The bed-and-breakfast rule and same-day matching rules require careful manual application. HMRC can challenge classifications.
UAE: While no personal CGT exists, corporate structures and VARA licensing requirements are complex. Consult a UAE-licensed advisor.
Germany: The one-year holding period exemption is valuable but requires precise date tracking. BMF guidance should be verified annually.
Australia: The 50% CGT discount requires assets to be held for exactly 12 months or more. ATO audit rates for crypto are increasing.
Professional Advice Required
Before filing any tax return that includes cryptocurrency transactions, you should consult with a qualified tax professional who is experienced in cryptocurrency taxation in your jurisdiction. The cost of professional advice is almost always less than the cost of penalties for incorrect filings.
No Liability
ArcanTax and its operators accept no liability for any tax penalties, interest charges, professional fees, or other costs arising from reliance on ArcanTax outputs. Use at your own risk.