Question on Canada and taxes

[csi]

I hired a tax lawyer 4 years ago to research this for me. It cost me 1500.00
Basically, he said there was no case law where revenue canada had gone after a poker player. And that Poker winnings do not fall under the criteria for "taxable income".

However, he did say that there is no guarantee that Revenue Canada wouldn't try and tax you if you were making a pile of money playing poker. In that event, then you would require a tax lawyer to fight them in Court.

[smashoneout]

Still a better deal than Australia. If you're a pro player, the motherland gets half.

[AAxxCracker]

Did your lawyer give you even a vague idea where the level of "a pile of money playing poker" starts? A pile is very vague. But thanks for your input on the subject.

I also wonder if writing down the occupation as "Poker Player" on a passport renewal form would raise flags if Passport Canada shares information with the Canada Revenue Agency and the person is not paying taxes on this income.

[blueodum]

That's probably what will happen - there will be a few high-profile cases some years down the road.

Still, fear of prosecution is not the only reason to obey the law - is it?

[blueodum]

I hired a tax lawyer 4 years ago to research this for me. It cost me 1500.00
Basically, he said there was no case law where revenue canada had gone after a poker player. And that Poker winnings do not fall under the criteria for "taxable income".


I think you got some bad advice. There is a section that does talk about gambling income; specifically when it is exempt and when it is taxable. And there have been Canada Revenue v sportbettors cases heard. How exactly does a poker player differ from a sportsbettor as far as the Candian tax code is concerned?

I asked my brother-in-law, who used to work for Revenue Canada and he confirmed that my understanding of the situation (see above)was correct.

[pocketjesuits]

So, suppose one were to not declare their poker income, and Revenue Canada were to come after them - what's the worst that could happen?

[homeboy604]

^^^they would probably determine how much tax you owe, then penalize you for not paying your taxes, plus interest.
probably double of what you owe them.

[DavidNB]

[ QUOTE ]
I hired a tax lawyer 4 years ago to research this for me. It cost me 1500.00
Basically, he said there was no case law where revenue canada had gone after a poker player. And that Poker winnings do not fall under the criteria for "taxable income".


I think you got some bad advice. There is a section that does talk about gambling income; specifically when it is exempt and when it is taxable. And there have been Canada Revenue v sportbettors cases heard. How exactly does a poker player differ from a sportsbettor as far as the Candian tax code is concerned?

I asked my brother-in-law, who used to work for Revenue Canada and he confirmed that my understanding of the situation (see above)was correct.

[/ QUOTE ]

http://www.cra-arc.gc.ca/E/pub/tp/it...it334r2-e.html

[SlightlyMad]

I've read all of the thread (and previous threads) ... and I've had my accountant read the appropriate bits of tax law as well.

In my case, employment income >> poker income and hours spent on employment income >> hours spent on poker. (Yes, I've read the snooker example from the other thread.) He felt comfortable in recommending to me when poker income >= employment income, claim poker as a business. Even if I luckbox my way into a WSOP ME win, pay the taxes. Until then, it is a hobby.

[BruceDoh]

[ QUOTE ]
^^^they would probably determine how much tax you owe, then penalize you for not paying your taxes, plus interest.
probably double of what you owe them.

[/ QUOTE ]

So it's still +EV as long as there is less than 50% of them catching on.