Originally Posted by Henry17
The fact that he went out and got a bunch of flow-thoughs kind of negates the first paragraph. There would be no need to do that if he actually believed that he was exempt from income tax. He got opinions from lawyers to create a good faith argument that he didn't need to pay tax. His hope would be that if CRA comes after him he can use that to argue that it wasn't tax evasion. If he actually wanted a definitive answer he could have asked CRA for an advance ruling.
I have talked to countles tax attorney's, (probably 25 +) and spend thousands trying to get some form of documentation from anyone of them saying in "their opinion poker winnings are not taxable" so I could in effect stop declaring my poker income and stop paying taxes. I have failed miserably and I have been unable to find a single one.
If someone could find me a tax attorney that will state this and provide me me with a notarized letter from that tax attorney stating their opinion I would gladly pay them a hefty sum. I will offer $5K finders fee right now to someone who can find this for me, let's call it the $5K challenge.
The sole reason being In the event I was ever audited and it was ruled that I owed income tax in those unfiled years I could pop out that letter and not be charged with tax evasion and be liable for the HEFTY PENALTIES AND INTEREST that I would have been acountable for that comes with being charged with tax evasion.
If I had a letter like that, best case scenario: I stop filing and possibly never have to pay income tax again for as long as I live. Worst case scenario: I stop filing, get autided 5 years later and have to pay the back taxes with no penalties in which case, I pay the back taxes and the 150-200K I have saved over the past 5 years by not filing taxes will have made me at least $50-70K in interset in investments made over the years
Theres nothing like owing 100K in unfiled back taxes for 3 years then getting an additional $200K added on top because of penalties and interest. i don't think a lot of people understand have severe the penaltiess can be if you are charged with tax evasion.
A letter like the one I asked for above would be worth it's weight in gold to me. Hence my search and hoping I will find just 1 who believes it is not taxable and will provide me with a good faith arguement to the CRA
As for Marc karams post I call BS on his statement. if he has the 3 top tax attorneys saying he does not have to pay income tax why doesn't he just not file?
Why does he need to play it safe?
Last edited by NL__Fool; 05-26-2008 at 07:11 PM.