tax question for canadians?

VicExpressMember#1 · Sep 23, 2005

Hi fellow canadians. I had a question regarding taxable winnings. I had heard that in canada, we may or may not have to report winnings for gambling to be taxed. I was just wondering what the real deal on this was, and if it is to be reported, how to go about doing so without getting in shit for betting online which is Illegal.

thanks.

dmmd98 · Sep 23, 2005

While not exactly an expert it goes loosely like this. If you make your income gambling you have to report your winnings to be taxed. However if its a "hobby" it doesn't have to be reported.

VicExpressMember#1 · Sep 23, 2005

thanks, I had actually done some research before you replied and found alot of great information on another forum, as well as some famous stories.

Another question, if someone is making good money and wishes to make large deposits, which is the best method of doing so? If it could be taxed regardless, does it really matter?

Also one more question, when you do declare to have it taxed, is it a good idea to not declare it is from internet gambling as it is illegal?

thanks again

BAUS · Sep 23, 2005

Internet gambling isn't illegal in Canada, in fact a lot of sportsbooks and casinos are licensed by an Indian reserve in Quebec.

BAUS

VicExpressMember#1 · Sep 23, 2005

Interesting stuff. I read on another site that in canada, Canadian laws allow provincial governments to conduct and manage lotteries and games of chance that are operated on or through a computer, such as Internet casinos; however, in most circumstances, there is criminal liability in Canada for anyone running an online gaming operation.

So I am pretty sure it is illegal in canada to operate an online sportbook, although I to merely place bets, perhaps not.

Edit: here is a website that explains it in regards to canada.

http://www.cbc.ca/news/background/gambling/onlinegambling.html

It doesnt appear it is illegal to merely place bets on an off shore account, The only federal laws i could see where the actual operations of online operations, the page indicates it does not appear to be illegal to bet online so thats a good thing to know.

valueman · Sep 23, 2005

I have spoken to one of the leading authorities on this subject and betting online is not illegal as long as the company we are doing it with has it's server outside canada - mohawk territory excepted.

As for tax we as canadians don't have to report winnings from gambling if it considered to be a windfall but if gambling is considered to be something you do for income purposes and it represents a significant proportion of your income then it is taxable wherever the company you bet is based.

How they would find out is another question.

dmmd98 · Sep 23, 2005

They found out thru your bank. If your bank has you listed as making 30k a year and you are moving 10k a month in neteller transactions you bank may flag and report that