Quote:
Originally Posted by Sr Amarillo
Hey guys! Reporting from Spain where as you may know, we are getting things regulated too. Have some questions about NZ, I would really apreciate your help.
Everyone here is planning to move to UK, where as Europeans we have no problems to move and where gambling is TAX FREE!! The thing is that if you get there as a UK citizen and you make lets say 100k that year, you can freely put it in your bank account and it will be "white money", even back at Spain when you go back home the following years.
Anyway, I've always heard that in NZ things are just the same as in UK. Tax free for all the online incoming profits. I am basically looking after information on this, because the plan is to move the following years to a place where I can make the money with no taxes arround, and that its legal when I get back home.
I apreciate any information on this, because I am moving after summer and I really need to take a choice as soon as possible.
Thanks a lot.
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FYI if you are playing cards for a living your earnings are taxable in NZ.
I approached around 10 accountants trying to find one who would say I didn't have to pay tax. All but 1 said I needed to be paying tax, the 1 that didn't was only 50:50 on weather i needed to be paying.
Here is some info an accountant sent me re tax. All the replies I received were basically the same as below.
"Gambling winnings can constitute taxable income if betting is indulged in as a means of producing an income as opposed to gambling as a pastime. (Duggan v C of IR 73 ATC 6001). If the client makes a professional living from the gambling, and has very little other income, these factors would indicate that the client is playing cards as a means of earning income, and it is more than just a pastime or hobby."
Maybe you could get around this by being a part time student or working part time....but if the IRD (tax man) decides to go after you, you are assumed guilty and its up to YOU to prove you are innocent.
A link to a recent IRD news letter which specifically mentions online poker (scroll to the bottom of the page under Future Focus)
http://www.ird.govt.nz/aboutir/newsl...-12-10.html#16
I'm not sure how much weight this newsletter carries....
If you want to avoid tax then I'd suggest moving to Australia instead. If you setup a residence in Australia then your winnings would be tax free. You could also travel to NZ very easily for months at a time.
People who say that poker is tax free in NZ are either, assuming that NZ and AUS tax law is the same (they're not!), have not got any professional advice themselves or, have advice from an accountant that i'd love to use (PM me!)