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Canada: Are online poker earnings taxable or not? - Canada
After the Black Friday (2010) hitting United States ipoker industry, Canada has become the new Eden of American poker players. To better monitor the growing numbers of local and foreign customers playing on Canada-based online poker platforms, the Canada Revenue Agency has set a regulation plan to define a benchmark on which online gaming earnings would be taxable. In fact, it is the countrys tax authorities that will determine whether a players gain is incidental or regular, thus, taxable or not. The said benchmark is based on some specific criteria.
Actually, gaming earnings are not subject to tax if the player has not invested considerable efforts in realizing the cashes. Besides, earnings should not be a regular source of income or won following a pursuit of gain. However, gaming earnings become taxable when they are realized on a regular basis, as a corporate income. Speaking of how the tax authorities assess gamblers gains as a business income, they have reportedly carried out an investigation on player's dedication in seeking a gain. The factor of chance is one of the investigations cornerstones. Of course, the number and frequency of bets are crucial criteria that allow them to claim whether such earnings are taxable or not. In short, any individuals who make a living out of gambling become taxable. The tax authorities may check the income statements of all poker players and other online gamblers. Eventually, the CRA will impose severe penalties on those regular gamblers who misreported their income.
Source: James WILLIAMS
Thursday, 19 March 2015
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