Canadian Online Poker Tax Thread

[4thstreetpete]

Hi guys, there seems to be a lot of confusion when it comes to paying taxes on online poker in Canada. Please keep all discussion regarding taxes in Canada in this thread for Canadian players (as well as people from abroad who may be contemplating moving to Canada or just interested in this subject).

First, I like to say that I am in no way qualified to give legal advice. From reading the various forums and researching with CCRA I have a few things to add.

I see a lot of posters here vehemently declaring that there are no taxes on gambling in Canada and that you don't have to pay taxes on gambling winnings. Trust me, I would like nothing better than to believe that this is true. However this only partially correct.

After reading the official website for the CCRA, (looking under "other types of income, ie gambling) they do bring up the subject of "reasonable expectation of profit". This is a very gray area, and is very vague. You can be taxed on carrying the business of gambling, as well as placing bets and wagering. A poster in the another thread stated that it does not necessarily have to do with how much you won but by the frequency of your activity. This is absolutely correct.

What does this all mean? Basically, if you're a for lack of a better term 'recreational player' then it's a fair assumption that you won't get taxed. However if you play very frequently and show a consistent profit for an extended amount of time, then you will fall into the dreaded category of "reasonable expectation of profit" and be deemed a professional gambler.

As far as I know no one has ever been busted for this, I could be wrong. However that doesn't mean that this won't happen in the future. Please remember that professional gamblers get taxed for their winnings and you're hardly unique in what you are doing.
If you make any considerable amount of money in poker and it seems like a lot of us in this forum do, it's best to consult with a qualified tax attorney to give you all the answers before you think about not paying your taxes on poker winnings.

If anyone have anything to add please feel free.

I know this is a sensitive subject but I would like to know of any canadian players who have paid taxes on their winnings in the past or have seeked legal advice on this subject, it would be of great help. Thanks.