AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Yes, it can. CRA computes gains and losses in Canadian dollars, converting your cost at the exchange rate when you bought and your proceeds at the rate when you sold, so shares that rose in naira can still show a capital loss in Canada if the naira fell further. The loss only exists once you dispose of the shares; half of it is an allowable capital loss that offsets taxable capital gains, carried back three years or forward.
Many Nigerians in Canada hold NGX shares bought before they moved or during visits home. In naira terms some have done well. In Canadian dollars the picture can be very different, because the naira has lost much of its value. The Canadian tax result follows the Canadian-dollar picture.
The rule
CRA's T4037 guide (modified 11 February 2026) says that when you sell capital property bought or sold in a foreign currency, you convert the proceeds at the exchange rate in effect at the time of the sale, the adjusted cost base at the rate when you acquired the property, and outlays and expenses at the rate when they were incurred. You then compare the two Canadian-dollar figures.
That means the exchange rate is built into the gain or loss. There is no separate calculation of "share gain" and "currency loss"; the whole result is one capital gain or loss in CAD.
A worked example
Example only: the exchange rates below are invented to show the mechanics, not historical or current rates.
| Step | Naira | Example rate (₦ per CAD) | CAD |
|---|---|---|---|
| Bought shares, including commission | ₦5,000,000 | 600 | 8,333.33 |
| Sold shares, after commission | ₦7,000,000 | 1,100 | 6,363.64 |
| Result | ₦2,000,000 gain | 1,969.69 capital loss | |
| Allowable capital loss at one-half | 984.85 |
In naira you made 40%. In Canadian dollars you lost about 24%, and that is the figure your return uses. Commissions are part of the calculation: buying costs go into the ACB at the purchase-date rate, selling costs are deducted from proceeds at the sale-date rate.
The reverse case
The same rule works in your favour or against you. Example only: if you had bought at ₦1,100 per CAD and sold at ₦800 per CAD, the same ₦5,000,000 cost and ₦7,000,000 proceeds would be CAD 4,545.45 and CAD 8,750.00, a capital gain of CAD 4,204.55, half of it taxable. A stronger naira between purchase and sale enlarges the Canadian gain.
This also means you cannot judge your Canadian position from your Nigerian broker statement. Keep a simple sheet that shows each holding's naira cost, the purchase-date rate and the CAD cost, and update it when you sell.
You need a disposition
A fall in value, however large, is not a loss for tax until you dispose of the shares. Holding a paper loss through a bad year gives you nothing to claim. If you sell to crystallise the loss and buy the same shares back soon after, CRA's superficial loss rules may deny it; T4037 covers these rules in its chapter on capital losses, so check them before you trade.
Using the loss
- The allowable capital loss first reduces taxable capital gains in the same year.
- An unused net capital loss can be applied to taxable capital gains in the three preceding years, or carried forward to any future year (T4037).
- It does not reduce employment or other income in a normal year.
- Report the sale on Schedule 3; a net taxable gain goes on line 12700.
Dividends received while you held the shares are separate: they are income in the year received, reported in Canadian dollars with a credit for Nigerian withholding (CRA line 12100 page). See NGX dividends on your Canadian return.
Shares you owned before moving to Canada
If you bought the shares before becoming resident, your starting point is generally their value when you became resident, not the original naira price. CRA's T1135 guidance uses fair market value at the date you became resident as the cost amount for new residents. Work out that value in naira and convert it at the rate for that date, and keep the evidence. See working out the CAD cost base of a naira investment.
Reporting the holding while you wait
Until you sell, the shares still count at their cost amount, generally ACB, towards the $100,000 threshold for Form T1135 (CRA Q&A, modified 19 October 2026). A falling naira does not reduce the cost amount, so the form may still be required even when the shares are worth much less today.
Which exchange rate
The Bank of Canada does not publish a naira rate (its table covers 24 other currencies). CRA Folio S5-F4-C1 accepts another source if it is widely available, verifiable, independent and used consistently. Record the source, the date and the rate for both the purchase and the sale.
Where Pryme fits
Sale proceeds paid into naira can be held in a Pryme account opened from Canada and converted with Swap when you choose, with the rate and fee shown first; each conversion gives you a dated record. Verifiable statements made with VerifyDoc.ai support your figures if CRA asks. More on holding several currencies.
Questions people ask
Can the naira devaluation give me a capital loss in Canada?
Yes. Because CRA converts cost and proceeds at the rates on the purchase and sale dates, a naira fall can turn a naira gain into a Canadian-dollar loss once you sell.
Can I claim a loss on Nigerian shares I have not sold?
No. A capital loss arises only on a disposition. An unrealised fall in value is not deductible.
Can a capital loss on Nigerian shares reduce my salary income?
Not normally. Allowable capital losses offset taxable capital gains, in the same year, the three previous years or future years.
What exchange rate do I use for naira on Schedule 3?
A recognised source used consistently, such as those named in CRA Folio S5-F4-C1, because the Bank of Canada publishes no naira rate.
Sources
- CRA: Guide T4037, Capital Gains 2025 (modified 11 Feb 2026) · accessed Oct 2026
- CRA: Income Tax Folio S5-F4-C1, Income tax reporting currency (updated 27 Jun 2024) · accessed Oct 2026
- Bank of Canada: Daily exchange rates (table dated 23 Oct 2026) · accessed Oct 2026
- CRA: Questions and answers about Form T1135 (modified 19 Oct 2026) · accessed Oct 2026
- CRA: Line 12100, interest and other investment income (modified 20 Jan 2026) · accessed Oct 2026
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