About
As CrowdFunding’s popularity increased it was only a mater of time before the Canada Revenue Agency (CRA) clarified legislation. In October of 2013 Revenue Canada stated that crowdfunding income is taxable. The Income Tax Act (subsection 9(1)) defined crowdfunding as business income, most campaigns provide a good or service to backers in exchange for funding. Campaign organizers can deduct any expenses related to the campaign and only the profits are taxed