Canadian Online Poker Tax Thread - Page 16

DonkEEE · #**151** 05-30-2007, 01:18 AM

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I've honestly talked to about 20 professionals, and I don't think any 2 answers were exactly the same. There are very few professional poker player who reside in Canada, meaning almost no professionals have experience with this.

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This is why it will be very interesting to receive an opinion from the CRA.

atom_new · #**152** 05-30-2007, 08:17 AM

Yep, it will be, but just a reminder that the CRA's word is not law. For example, the Interpretation bulletin that's been posted often is just CRA stating how they choose to interpret the act. However, when it comes to interpretating law, the courts' word is final.

ata · #**153** 05-30-2007, 02:19 PM

I don't think the CRA is in a position to fine Canadian poker players for tax evasion. The worst they can do at this point is bring you to court to actually pay your taxes on poker profits. The law is too unclear to actually make a case that you willfully broke the law. Until the precedent case arises, I don't see the point in paying taxes on poker profits. Of course doing your due diligence and discussing it with a tax professional and among peers as is being done in this thread is not a bad thing.

myst1 · #**154** 05-31-2007, 12:17 AM

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I don't think the CRA is in a position to fine Canadian poker players for tax evasion. The worst they can do at this point is bring you to court to actually pay your taxes on poker profits. The law is too unclear to actually make a case that you willfully broke the law. Until the precedent case arises, I don't see the point in paying taxes on poker profits. Of course doing your due diligence and discussing it with a tax professional and among peers as is being done in this thread is not a bad thing.

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The thing I'm worried about the most is that I don't want them to come at me 3 or 4 years down the road and say "Hey, you owe us a bajillion dollars + interest".

slim · #**155** 05-31-2007, 12:32 AM

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I don't think the CRA is in a position to fine Canadian poker players for tax evasion. The worst they can do at this point is bring you to court to actually pay your taxes on poker profits. The law is too unclear to actually make a case that you willfully broke the law. Until the precedent case arises, I don't see the point in paying taxes on poker profits. Of course doing your due diligence and discussing it with a tax professional and among peers as is being done in this thread is not a bad thing.

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well said.....exactly how I feel. Only thing I disagree with is even getting any legal advice bc then it'll seem like you kinda knew you should be paying taxes if they ever came after you.

slim · #**156** 05-31-2007, 12:34 AM

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I don't think the CRA is in a position to fine Canadian poker players for tax evasion. The worst they can do at this point is bring you to court to actually pay your taxes on poker profits. The law is too unclear to actually make a case that you willfully broke the law. Until the precedent case arises, I don't see the point in paying taxes on poker profits. Of course doing your due diligence and discussing it with a tax professional and among peers as is being done in this thread is not a bad thing.

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The thing I'm worried about the most is that I don't want them to come at me 3 or 4 years down the road and say "Hey, you owe us a bajillion dollars + interest".

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I think the chances of you getting "caught" is sooooo slim that I would take the chance. Even if you end up having to pay the taxes plus interest, you are no worse off than if you pay them right now.

DonkEEE · #**157** 05-31-2007, 12:12 PM

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I think the chances of you getting "caught" is sooooo slim that I would take the chance. Even if you end up having to pay the taxes plus interest, you are no worse off than if you pay them right now.

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Just a guess, but I suspect that a deposit of $1.6 million (or whatever Myst won in Monaco) from a foreign source (or any source) might just raise some flags at the neighborhood bank that are passed on to the CRA.

If there are penalties tacked onto the interest they will likely gobble up a major chunk of any past winnings.

PatInTheHat · #**158** 05-31-2007, 12:19 PM

Isn't it also true they can only collect back taxes of up to 3 years? If thats true and you get past the 3 years hump the money you saved would make up for anything you have to pay down the road.

myst1 · #**159** 05-31-2007, 03:55 PM

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Isn't it also true they can only collect back taxes of up to 3 years? If thats true and you get past the 3 years hump the money you saved would make up for anything you have to pay down the road.

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Can anyone verify this? That would be nice to know.

GrinningBuddha · #**160** 05-31-2007, 05:10 PM

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Isn't it also true they can only collect back taxes of up to 3 years? If thats true and you get past the 3 years hump the money you saved would make up for anything you have to pay down the road.

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Can anyone verify this? That would be nice to know.

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Not true. I don't know if there is a statute of limitations on back taxes (I suspect not), but I know for sure if there is one, it's 7 years at a minimum.