CRA expands its discussion of crypto mining groups

CRA has published a revised version of its Notice on cryptoasset mining. This notice has been updated to clarify the types of crypto mining arrangements that would be indicative of a person and a mining pool operator not being members of the same mining group for the purposes of s. 188.2. Being members of the same mining group could have the effect of deeming otherwise-taxable supplies made by the person to the operator not to be taxable supplies.

A “mining group” is a group of persons who agree to contribute property or services to perform mining activities together and who share mining payments in respect of the mining activities.

CRA considers that a person shares mining payments when the person shares in the risk of success in the mining activities of the group. Accordingly, where a person earns compensation that is determined based on an estimate of potential mining payments and the amounts are not adjusted to the actual mining payments, the person may not be considered to share in the mining payments.

For example, where a person is paid by the mining pool operator for the contribution of computing resources by the person and the payment is based on the expected value of the number of blocks validated, calculated based on the expected block subsidy (or the expected block subsidy and expected transactions fees), regardless of whether the activity gives rise to an actual block subsidy or transaction fee, the person is considered to bear no risk in the success of earning the block subsidy and transaction fees so that inter alia its services to the operator generally are taxable supplies rather than being deemed under s. 188.2 not to be supplies.

Neal Armstrong. Revised summaries of GST/HST Notice No. 324, "Mining Assets in respect of Cryptoassets" June 2025 under ETA s. 188.2(5) and s. 123(1) – consideration.