Canadian Online Poker Tax Thread

[TorontoCFE]

It doesn't matter where the money is earned or spent.
If you live in Canada or are deemed to live in Canada, then you are required to pay Canadian tax on your GLOBAL INCOME.

There is no legal way around that other than international tax treaties , but all that allows you to do is declare the income in Canada and deduct the foreign income tax paid against what you owe in Canada. If you aren't paying tax on it anywhere else, you pay the full amount to Canada.

[TorontoCFE]

Hmm...maybe I should rent a banquet room at Casino Rama and give a seminar about the poker player and taxes.

lol

[sumdumguy]

231.2. (1) Notwithstanding any other provision of this Act, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of this Act, including the collection of any amount payable under this Act by any person, by notice served personally or by registered or certified mail, require that any person provide, within such reasonable time as is stipulated in the notice,

(a) any information or additional information, including a return of income or a supplementary return; or

(b) any document.
.

231.6. (1) For the purposes of this section, "foreign-based information or document" means any information or document that is available or located outside Canada and that may be relevant to the administration or enforcement of this Act, including the collection of any amount payable under this Act by any person.
(2) Notwithstanding any other provision of this Act, the Minister may, by notice served personally or by registered or certified mail, require that a person resident in Canada or a non-resident person carrying on business in Canada provide any foreign-based information or document.

(3) The notice referred to in subsection 231.6(2) shall set out

(a) a reasonable period of time of not less than 90 days for the production of the information or document;

(b) a description of the information or document being sought; and

(c) the consequences under subsection 231.6(8) to the person of the failure to provide the information or documents being sought within the period of time set out in the notice.

What is the meaning of these sections?
Does it compel a taxpayer to produce screenshots of their transaction history with neteller or a poker site?

[TorontoCFE]

It means that the CRA can demand to see evidence to support your claims on your tax return and you have 90 days (more if they consent) to hand it over.
In practice this means seeing bank statements and cheques. Anything that does not customarily come with hard copies is not expected.

[Equal]

ttt

[AlphaGun]

What types of records should we be keeping in case of a CRA audit? Will our Netteller and transaction histories from different poker rooms be enough or should we have records of all our sessions?

[Lawrence Ng]

[ QUOTE ]
On the other hand, if you make your money in large multitable tournaments, then you have a better arguement that it is a windfall and not a business. The problem is that it would be up to you to prove that. Tax-wise, you'd have a better position winning the WSOP and that's it for the year then winning $5 million playing 4 hours a day every day.

[/ QUOTE ]

Would this not be the optimal way to declare a large sum poker withdrawal? The CRA may have share information with the US on Neteller accounts, but are poker sites such as PP, PS, Paradise etc. going to share and relay information back with the CRA? I highly doubt they will as the poker sites keep a very high level of confidentiality within its player base, thus even the CRA wouldn't be able to impose an audit through there.

Lawrence

[Kirg]

[ QUOTE ]
The CRA may have share information with the US on Neteller accounts

[/ QUOTE ]

Neteller is a publicly traded Canadian company, so the CRA doesn't have to pass the US for Neteller information.

[Equal]

TTT for tax season!

[TorontoCFE]

I've already filed my return and got my refund.

Thought I could find a better use for the money than the government could. [img]/images/graemlins/wink.gif[/img]