The income tax and HST treatments of Bitcoin barters are at odds

CRA considers that in a transaction where a merchant (or other business) sells goods or services for Bitcoins, the profit for income tax purposes is based on the normal selling price of the property or services, whereas the consideration for HST/GST purposes is the value of the Bitcoins. The two values could differ significantly if the vendor is selling on a bargain basis or the Bitcoin values are fluctuating wildly.

When asked about capital gains treatment in the context of the "enormous" recent appreciation of Bitcoins, CRA indicated that Bitcoins are treated the same as other commodities, so that capital gains treatment may be possible in the circumstances.

Neal Armstrong. Summaries of 23 December 2013 Memo 2013-0514701I7 under ETA – s. 153(1), ITA – s. 9 – Computation of profit and s. 9 - Capital gain vs. profit - Commodities, and commodities futures and derivatives.