Canadian Online Poker Tax Thread - Page 37 - Poker Legislation

My bank just closed my account telling me I needed to have a commercial account to withdraw such large sums. Poker is my only income and I don't file anything. What's my plan? Just open a bank account somewhere else?

I told my bank I was selling domain names when they asked me where the money came from fwiw.

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11-10-2009 , 12:36 PM

#902

kb24mvp

journeyman

Join Date: Aug 2008 Posts: 217

whats the easiest way to trade on the forex market if i have large sums of US$ in my TD Borderless account and want to use forex to trade it to CDN$

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11-10-2009 , 03:16 PM

#903

TorontoCFE

grinder

Join Date: Sep 2004 Posts: 544

Quote:

Originally Posted by clickabutton

Now you should just go elsewhere. If you like the old bank, go for a commercial account but it carries higher fees.

You don't have to have a commercial account though so a bank insisting on one probably really doesn't want your business.

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11-10-2009 , 03:16 PM

#904

TorontoCFE

grinder

Join Date: Sep 2004 Posts: 544

Quote:

Originally Posted by kb24mvp

whats the easiest way to trade on the forex market if i have large sums of US$ in my TD Borderless account and want to use forex to trade it to CDN$

What type of transactions do you want to engage in? Simply changing USD to CAD at the spot rate?

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11-10-2009 , 03:40 PM

#905

kb24mvp

journeyman

Join Date: Aug 2008 Posts: 217

Quote:

Originally Posted by TorontoCFE

What type of transactions do you want to engage in? Simply changing USD to CAD at the spot rate?

yes...changing USD to CAD at the best possible rate i can get... right now i am using XE... trying to see what is better

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11-10-2009 , 05:05 PM

#906

Henry17

Carpal \'Tunnel

Join Date: Aug 2007 Posts: 27,710

Asking you to get a commercial account is because you told them you are using a personal account to run a business. If you are going to lie you should have realized that. It was a stupid lie. Poker is not illegal in Canada and we have nothing like the US law so why make something up? IF it was for tax purposes lying that the source of the funds is unreported bossiness income rather than gambling winnings is shooting yourself in the foot.

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11-10-2009 , 05:17 PM

#907

clickabutton

banned

Join Date: Mar 2009 Posts: 937

Do you think there's any chances that the bank contacted the CRA about this?

I realize I've done a very stupid mistake.

Also, I have a very simple question: isn't it illegal to not claim any revenue in Canada? Because I don't at the moment, and don't plan on doing it based on what I read in this thread.

Thx so much for the replies guys.

Last edited by clickabutton; 11-10-2009 at 05:24 PM.

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11-10-2009 , 06:17 PM

#908

TorontoCFE

grinder

Join Date: Sep 2004 Posts: 544

It would be illegal to not declare taxable income . There is no such thing as declaring nontaxable income. Whether income is taxable is a different discussion.

The bank won't contact the CRA ever. At worst (and not in this case) they tell FINTRAC and that is only if they don't believe you and have reason to suspect you of criminal activity.

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11-10-2009 , 06:20 PM

#909

TorontoCFE

grinder

Join Date: Sep 2004 Posts: 544

Quote:

Originally Posted by kb24mvp

yes...changing USD to CAD at the best possible rate i can get... right now i am using XE... trying to see what is better

Maybe try someone like Cambridge Mercantile if you are doing more than 25k at a time. They will beat the current bank spot rate by a couple hundreths.

Or build up a relationship with your bank branch and if you are a big customer then get a private banking manager. Service might make it worthwhile but you won't get the best rate through a bank.

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11-10-2009 , 06:40 PM

#910

kb24mvp

journeyman

Join Date: Aug 2008 Posts: 217

Quote:

Originally Posted by TorontoCFE

thx a lot i will check them out.... I was wondering do my transactions come under a lot more scrutiny(from the bank, CRA etc) if I do it 25k at a time through a service like that instead of 7-9k through xe.com every few weeks to avoid the mandatory 10k report

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11-10-2009 , 07:20 PM

#911

TorontoCFE

grinder

Join Date: Sep 2004 Posts: 544

Quote:

Originally Posted by kb24mvp

No it doesn't make any real difference.

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11-11-2009 , 05:41 AM

#912

donut604

enthusiast

Join Date: Mar 2007 Posts: 84

I'm not sure if it already says it somewhere in this thread but it is too long to read through. I was told by the pit boss at the Venetian that there was a new law passed about 3 months ago and now Canadians can get their taxes back from a tournament win in just a few weeks whereas it used to take months or more. He also said you can get it back by paying a 1% fee to a company to process it for you.

Does anyone know anything about this. Is it true and can you direct me to one of these companies?

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11-11-2009 , 06:01 AM

#913

Henry17

Carpal \'Tunnel

Join Date: Aug 2007 Posts: 27,710

There are companies that do this. You see them advertising at 3AM, on that gaming specialty channel, and in gambling magazines. Never used one but the fees were more than 1%. Possibly competition has brought them done since it has been at least 8-9 years since the last time anyone I know used them. There is nothing that they can do for you that you can't do yourself and while dealing with the government is a form of torture possibly worth contracting out the motivation should be in not having the hassle rather than any expected expediency.

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11-11-2009 , 06:05 AM

#914

donut604

enthusiast

Join Date: Mar 2007 Posts: 84

Yes I know of one company that does that. They charge 10% though and you can only apply for a return once a year, in January.

The pit boss though assured me that there was some new law passed a few months ago and Canadians have been able to get their taxes back within a matter of weeks for a 1% fee from companies. He wasn't sure of the details but I made sure that he was positive it is possible for that cheap. I was heads up with a guy from london where they don't pay those taxes so if the pit wasn't positive I was just gonna have the london guy sign for 1st place.

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11-11-2009 , 06:27 AM

#915

Henry17

Carpal \'Tunnel

Join Date: Aug 2007 Posts: 27,710

If there is a new law it would be a US tax law so possible I wouldn't have heard about it but as far as I know you have to file a 1040NR return and that takes a few months.

A quick google search shows nothing.

Maybe try the legislation section as this is a US tax issue so someone there might know better.

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11-15-2009 , 06:59 AM

#916

Arnz18

veteran

Join Date: Apr 2008 Posts: 2,132

ok i got a question this year so far I lucksacked 85k in tourneys and also made another 75k playing cashgames which I play for my main source of income if I live in the province of Sask. If I were to pay taxes do I pay on the tourney lucksacks or do i just pay on the cashgame winnings and does anyone know what % I would be paying on any of this. thanks

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11-15-2009 , 07:24 AM

#917

TaxGuru

journeyman

Join Date: Nov 2008 Posts: 223

I don't think it's a no-brainer that you'd legally have to pay either amount (though this is contentious). With regard to the cash games, it is probably 50/50 depending on how long you've been playing and supporting yourself, etc. With regard to the tournaments, a similar, partly independent legal inquiry might be entertained. If you PM me, I can give you some more info about these questions.

If you were to pay, it would be at the applicable marginal tax rates. There is a useful income tax estimator here: http://www.walterharder.ca/T1.html The full rocket would be a little north of $48k.

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11-15-2009 , 11:26 AM

#918

milliondollargame

stranger

Join Date: Sep 2009 Posts: 2

Quote:

Originally Posted by TaxGuru

i haven't read the entire thread but this got me thinking about this question. Are we supposed to pay just federal income tax or federal and provincial tax? thanks

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11-15-2009 , 11:31 AM

#919

Henry17

Carpal \'Tunnel

Join Date: Aug 2007 Posts: 27,710

Quote:

Originally Posted by milliondollargame

i haven't read the entire thread but this got me thinking about this question. Are we supposed to pay just federal income tax or federal and provincial tax? thanks

Why would you think that you would only have to pay the federal?

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11-15-2009 , 04:36 PM

#920

Rainbow Warrior

flight risk

Join Date: Sep 2002 Posts: 5,815

How could you ever pay one without the other?
Maybe PQ.

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11-15-2009 , 08:38 PM

#921

TaxGuru

journeyman

Join Date: Nov 2008 Posts: 223

What do you suppose happens if you live in the Yukon at the end of the year? (hint: no "provincial" tax)

Also, if you don't live in Canada but are nonetheless a resident as of December 31, you pay federal income tax (and a federal surtax under subsection 120 of the Act) only to the feds. The federal surtax is intended to capture an amount roughly equal to the personal income tax that would have been payable to the non-existent province of residence...

Last edited by TaxGuru; 11-15-2009 at 08:45 PM.

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11-24-2009 , 05:38 AM

#922

harangutang

Pooh-Bah

Join Date: Jul 2007 Posts: 3,956

Have any tax-paying Canadian poker players incorporated? I am about to incorporate and would greatly appreciate any business bank account recommendations experiences. If anyone has incorporated it would be great if they could pm me, thanks.

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11-24-2009 , 03:55 PM

#923

Scotty_12

Pooh-Bah

Join Date: Apr 2006 Posts: 5,359

Quote:

Originally Posted by kb24mvp

yes...changing USD to CAD at the best possible rate i can get... right now i am using XE... trying to see what is better

I used a company called Globex and dealt with a woman name Snow.

san@globexfx.com is her email, http://www.globexfx.com/ is their website

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11-29-2009 , 11:03 PM

#924

thejayman

journeyman

Join Date: Jan 2008 Posts: 224

Hey guys I have a question about cashing in a US tourney and the 30% tax that they withhold. A few years ago I made small cash about $3K and used refund management system to get the refund minus the 20% fee. Now if I were to cash for say $30K am I still eligible to receive all of the 30% that the casino withholds minus the fee? Or am I only eligible to recover the first $10K or whatever the threshold it is that you have to start paying income tax in the US. For example in Canada the first $9-10K in any income you make is tax free.

Thanks in advance

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11-30-2009 , 12:42 AM

#925

xx23

journeyman

Join Date: Nov 2007 Posts: 389

Have a quick question:

A couple of months ago I won a table share of a jackpot at Commerce, and recently they sent me a letter from the casino telling me I have to give the IRS my social security number. Since I had a Canadian ID, they withheld the 30% and didn't even bother giving me a receipt til I asked. Then they wrote some vague info on a very unofficial piece of paper that I have now misplaced.

Does anyone know if I have to fill this form out and return it, since I'm a Canadian and I've already paid my portion of taxes on it?

Thanks a ton~

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