Canadian Online Poker Tax Thread

[DavidNB]

A cut asnd paste from the reveunve canada about windfalls

Windfalls


3. Subject to the comments in the current version of IT-213, Prizes From Lottery Schemes, Pool System Betting and Giveaway Contests, and those in 4 and 10 below concerning Voluntary Payments and Gambling Profits, a taxpayer in receipt of an amount which can be described as a "windfall" is not subject to tax on the amount. Factors indicating that a particular receipt is a windfall include the following:

(a) the taxpayer had no enforceable claim to the payment,

(b) the taxpayer made no organized effort to receive the payment,

(c) the taxpayer neither sought after nor solicited the payment,

(d) the taxpayer had no customary or specific expectation to receive the payment,

(e) the taxpayer had no reason to expect the payment would recur,

(f) the payment was from a source that is not a customary source of income for the taxpayer,

(g) the payment was not in consideration for or in recognition of property, services or anything else provided or to be provided by the taxpayer, and

(h) the payment was not earned by the taxpayer as a result of any activity or pursuit of gain carried on by the taxpayer and was not earned in any other manner.

The factors above are based on those set out in the decision of The Queen v. Cranswick, (1982) CTC 69, 82 DTC 6073 (F.C.A.).