Digital currencies such as Bitcoin are the new kids on the block, and are becoming a popular way to sell goods, or to have as an investment. So, how do they affect your taxes?

Unlike our normal currency, Bitcoins are not controlled by a central bank, or even by any specific country. They can be bought and sold in return for traditional currency, and can be transferred between individuals. As a result, the Canada Revenue Agency (CRA) doesn’t consider them to be a foreign currency. Instead, Bitcoins and other digital currencies are viewed as a commodity, where any gains or losses could be taxable income or capital for the taxpayer.

The CRA expects you to report these transactions as you would any other business or investment transaction, and report it on your tax return. While banks do not have record of it, the CRA is well aware of digital currency, and is actively pursuing cases where they believe there is non-compliance with reporting income.

Essentially, a person who sells something in exchange for Bitcoin is seen to have sold it for its fair market value at the time of the exchange.

Here are a few things to keep in mind if you own or exchange digital currency:

• To calculate the dollar value of a Bitcoin transaction, you must use the exchange rate for Bitcoin and the Canadian dollar on the day of the transaction
• If you use Bitcoin or other digital currency systems in the operation of your business or self-employment activities, you’re still responsible for claiming these purchases and payments as usual on your tax return

• Any business accepting digital currency is considered engaging in a barter transaction. If the trade was a business transaction, this would be viewed as income to the business. If you trade for an item, the value of that item would be considered income. For example, if I accept digital currency for the sale of a book, then the value of the book would be the amount of income I would have to report

• If you buy, hold and sell digital currency outside of a business, and make a profit in the process, you must report that profit as a capital gains. The portion of the CRA’s tax code regarding securities exchanges applies to these transactions. For example, if you purchased 100 Bitcoins for $25,000, but sold them six months later for $32,000, you would have to declare a capital gain of $7,000. The exemption of $200 per year on capital gains from foreign currency transactions does not apply to Bitcoins

• Unlike foreign currencies, digital currencies cannot be held in an RRSP or other registered plan, since they are not qualified investments

• If you are holding Bitcoins with a Canadian dealer, they won’t be subject to the foreign property reporting rules. However, if you hold your coins with an American or other foreign dealer, and they aren’t being held or used in carrying on a business, you’ll need to complete the Form T1135 Foreign Income Verification Statement if the value of the Bitcoins is more than $100,000

BEIJING — China has dismissed White House criticism of its “Orwellian” demand that foreign airlines not refer to self-ruled Taiwan as a country, saying companies operating in China must respect its sovereignty.

“Whatever the U.S. says will never change the objective fact that there is only one China in the world and the Hong Kong, Macau and Taiwan regions are an inalienable part of China’s territory,” foreign ministry spokesman Geng Shuang said in a statement Sunday posted online.

“Foreign enterprises operating in China should respect China’s sovereignty and territorial integrity, abide by China’s law and respect the national sentiment of the Chinese people,” Geng said.

Unlike self-ruled Taiwan, Hong Kong and Macau are Chinese territories operating with some degree of autonomy.

Taiwan’s independence-leaning president, Tsai Ing-wen, weighed in with a tweet, saying, “We call on all businesses to resist #China’s efforts to mischaracterize #Taiwan.”

The government of Chinese President Xi Jinping has been increasingly assertive about its claims to Taiwan, which it has threatened to invade to bring under its control. Delta Air Lines, hotel operator Marriott, fashion brand Zara and other companies have apologized to China for referring to Taiwan, Hong Kong, and Tibet as countries on websites or promotional material.

The White House on Saturday condemned China’s efforts to control how U.S. airlines refer to Taiwan, Hong Kong and Macau, saying the push to make them comply with Chinese standards is “Orwellian nonsense.”

China’s Civil Aviation Administration has demanded the change from 36 foreign airlines, including some American carriers, according to the White House.

President Donald Trump will “stand up for Americans resisting efforts by the Chinese Communist Party to impose Chinese political correctness on American companies and citizens,” press secretary Sarah Huckabee Sanders said in a statement.

“This is Orwellian nonsense and part of a growing trend by the Chinese Communist Party to impose its political views on American citizens and private companies,” Sanders said. She said the Trump administration is calling on China “to stop threatening and coercing American carriers and citizens.”

Australia called demand ‘inappropriate’

The harshly worded statement came as a high-level trade delegation led by Treasury Secretary Steven Mnuchin returned from negotiations in China and as Secretary of State Mike Pompeo spoke with a member of the Chinese Communist Party leadership.

In their telephone conversation on Saturday, Pompeo and Politburo member Yang Jiechi “affirmed the importance of a constructive, results-oriented bilateral relationship,” State Department spokeswoman Heather Nauert said in a statement.

Australian carrier Qantas is among the airlines told to change how they refer to Taiwan, prompting comments from Foreign Minister Julie Bishop that any such pressure is inappropriate.

“The terms that private companies choose to list destinations are a matter for them,” Bishop said in comments provided by her office. “There should be no pressure from governments, whether ours or others, that threatens the ordinary operations of business.”

Bishop said she hoped the current understanding with China could continue and that her department would continue to liaise closely with Qantas.

It wasn’t clear what China had demanded Qantas do, or what the penalties for non-compliance might be.

As China leverages the power of its massive domestic market to bend foreign companies to its political will, its retribution has sometimes targeted those firms’ online presence.

Regulators ordered Marriott to close its China-based website and app for one week after criticizing the company for referring to Tibet and Taiwan as countries in a customer survey.

The moves come as China is stepping up efforts to isolate Taiwan diplomatically. The Dominican Republic switched its official recognition from Taipei to Beijing last week, leaving the island with just 19 diplomatic allies.

In a further move, the ministry spokesman Geng indicated Monday that Beijing is blocking Taiwan’s observer status at the United Nations’ World Health Assembly for a second straight year because of Tsai’s refusal to endorse the “one China principle” acknowledging Taiwan as part of China.

Also On HuffPost:

Tim Hortons plans to renovate most of its Canadian restaurants over the next several years in what some franchisees say is another “ill-conceived” move that will cost individual restaurant owners about $450,000.

The coffee-and-doughnut chain and its restaurant owners will invest $700 million to gussy up almost all its Canadian locations over the next four years, the brand said.

The new restaurants will have lighter, more natural looking exteriors, and feature upgraded, open-concept seating, the Restaurant Brands International-owned chain said in a statement.

“The expectations of our guests are evolving,” said Alex Macedo, the brand’s president, in a statement explaining the design change.

Franchisee association urged members not to agree

The decision has generated more animosity between the chain and an unsanctioned franchisee group, the Great White North Franchisee Association.

Earlier this month, the company held a call with franchisees explaining they wanted each restaurant owner to spend about $450,000 to renovate their stores, the GWNFA’s board of directors said in a letter to its members.

The company said Tuesday that costs will be split with restaurant owners on the same proportions as has historically been the case, but declined to specify what those proportions are.

The board acknowledged many of its members “will have problems getting the finances in place to carry out these renovations” and called on the company to show a full costing of the renovation program.

It advised members, which make up about half of all of Tim Hortons Canadian franchisees, not to sign or agree to anything until more details are disclosed.

“This is just one more in the string of ill-conceived programs brought forward by a group of executives who do not understand foodservice, franchise operations or marketing,” the letter reads.

Restaurant Brands International, “wants to fix a problem it cannot solve, mainly lack of sales, by getting us to spend money while they contribute very little,” the letter said.

Tim Hortons recorded a fifth consecutive quarter of sluggish sales in mid-February, according to RBI’s most recent quarterly earnings report.

The GWNFA formed about a year ago to give a voice to frustrated restaurant owners and fight against what they say is mismanagement of the chain by its corporate parent, RBI, known for drastic cost-cutting measures at the fast-food outlets its acquires.

The two groups have taken their battle to the courts with multiple lawsuits, and most recently entered a showdown over how to handle Ontario’s roughly 20 per cent minimum wage increase. The GWNFA accuses RBI of failing to help franchisees offset the increased labour costs through a 10 per cent price hike on all menu items.

RBI did not agree to the price hikes, but called the actions of some franchisees in the province who clawed back employee benefits, like paid breaks, reckless and completely unacceptable.

Also On HuffPost:

Read the Eurogamer.net reviews policy

TORONTO — Canada Goose is flocking to China with a plan to open two stores in Beijing and Hong Kong, e-commerce operations in partnership with Alibaba Group and a regional head office in Shanghai.

The Toronto-based luxury retailer that is known for its high-end parkas says the stores and e-commerce operation will launch this fall.

Canada Goose President and Chief Executive Officer Dani Reiss says the company is expanding in the country because it has seen demand from Chinese consumers for years.

Watch: PETA urges Drake to ditch Canada Goose (story continues below)

The e-commerce operations will be launched in conjunction with Alibaba Group’s online business-to-consumer platform.

It will open bricks-and-mortar locations in Beijing and Hong Kong.

Canada Goose already has flagship stores in Toronto, Calgary, New York, London, Tokyo, Chicago and Boston.