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Old 10-09-2011, 11:57 AM   #1776
TaxGuru
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Re: Canadian Online Poker Tax Thread

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Originally Posted by Solowins View Post
Saying that poker money is used for work and not lifestyle is a very strong argument and like I said I think that's pretty much checkmate in terms of a court case and the govt knows it.
This is not a strong argument.
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Old 10-09-2011, 12:11 PM   #1777
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Re: Canadian Online Poker Tax Thread

Solid contributions Solowins. Just what this thread is in need of.

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Old 10-09-2011, 12:15 PM   #1778
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Re: Canadian Online Poker Tax Thread

I never asked for anything I suggested to be taken at face value. I already mentioned it is theorycrafting and is open to be picked apart at anytime by an expert who actually knows what he is talking about.

My thinking is more of a fantasy than what is probably reality, I only wish for it to be true would be nice if you could just keep your winnings in cyber space and never have to get taxed on it.
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Old 10-09-2011, 12:18 PM   #1779
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Re: Canadian Online Poker Tax Thread

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This is not a strong argument.
What do you think the govt would come back with to that argument though?

More specifically, I can't argue that my winnings are subject to the future cost of doing business?


















afk moving to another country
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Old 10-09-2011, 12:21 PM   #1780
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Re: Canadian Online Poker Tax Thread

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I never asked for anything I suggested to be taken at face value. I already mentioned it is theorycrafting and is open to be picked apart at anytime by an expert who actually knows what he is talking about.
No offense or anything man, just read the thread....really. Then reassess what you've written and ask yourself what you've contributed.

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Old 10-09-2011, 12:21 PM   #1781
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Re: Canadian Online Poker Tax Thread

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Just curious, what's to stop someone from just leaving their funds in cyber space and withdrawing at the pace of a moderate lifestyle?
Defeats the point of having money.

The lost returns compounded over years would dwarf your tax liability.

Risk of the online storage failing and your funds disappearing.
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Old 10-09-2011, 12:27 PM   #1782
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Re: Canadian Online Poker Tax Thread

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No offense or anything man, just read the thread....really. Then reassess what you've written and ask yourself what you've contributed.

Yeah I'm sure the answers to my question are in there somewhere, laziness got the best of me ^.^

Seems like the thing to do is get used to it or move to a new country
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Old 10-09-2011, 12:35 PM   #1783
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Re: Canadian Online Poker Tax Thread

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Yeah I'm sure the answers to my question are in there somewhere, laziness got the best of me ^.^

Seems like the thing to do is get used to it or move to a new country
Don't be lazy. I'm not trying to be a jerk. This thread is worth a read. About 70% of it is filled with posts like yours and much worse, so you can speed read/skim through a lot of it. You will find a ton of quality info though if you stick with it. I think it's the responsibility of any poker pro in Canada to be as educated on this issue as possible.
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Old 10-09-2011, 12:38 PM   #1784
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Re: Canadian Online Poker Tax Thread

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Don't be lazy. I'm not trying to be a jerk. This thread is worth a read. About 70% of it is filled with posts like yours and much worse, so you can speed read/skim through a lot of it. You will find a ton of quality info though if you stick with it. I think it's the responsibility of any poker pro in Canada to be as educated on this issue as possible.
Nah you're not comming off like a jerk =) I should have read first, but saw the 100 pages and like you said, knew most of it would be posts like mine lmao ;p

I just checked through it and was suprized to see a few people actually put some really good stuff in there.
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Old 10-25-2011, 04:29 PM   #1785
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Re: Canadian Online Poker Tax Thread

if i am a former US player who has relocated to canada, do i owe taxes to the canadian government if i win money at an online poker site like pokerstars?
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Old 10-26-2011, 06:53 AM   #1786
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Re: Canadian Online Poker Tax Thread

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if i am a former US player who has relocated to canada, do i owe taxes to the canadian government if i win money at an online poker site like pokerstars?
Only if you're in the business of playing poker.
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Old 11-02-2011, 12:58 AM   #1787
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Re: Canadian Online Poker Tax Thread

Exactly what bill or "law" specifies that Canadian must pay the government tax money? Can we list them down so we can have a look at them in real life?
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Old 11-02-2011, 06:39 PM   #1788
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Re: Canadian Online Poker Tax Thread

It is a great little document with the short title the "Income Tax Act."

http://www.taxwiki.ca/Income+Tax+Act

Last edited by TaxGuru; 11-02-2011 at 06:40 PM. Reason: typo
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Old 11-02-2011, 07:13 PM   #1789
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Re: Canadian Online Poker Tax Thread

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Old 11-03-2011, 12:54 AM   #1790
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Re: Canadian Online Poker Tax Thread

hey, iv searched the threads and cant find an answer so if someone could help me out it would be appreciated. I'm a Canadian looking to get staked in an American trny. Just wondering how i go about the taxes. Do I just pay them all myself and split the winnings or do I get everyone SIN # and info and do it for them.

Thank you in advance,
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Old 11-03-2011, 08:46 AM   #1791
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Re: Canadian Online Poker Tax Thread

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Originally Posted by TaxGuru View Post
It is a great little document with the short title the "Income Tax Act."

http://www.taxwiki.ca/Income+Tax+Act
if you say it like that then there is no avoidance of taxation at all and everyone MUST pay, but that is not the case, i have not heard of anyone having to pay taxes on their poker winnings at all
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Old 11-03-2011, 11:58 AM   #1792
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Originally Posted by Sharpunzle View Post
hey, iv searched the threads and cant find an answer so if someone could help me out it would be appreciated. I'm a Canadian looking to get staked in an American trny. Just wondering how i go about the taxes. Do I just pay them all myself and split the winnings or do I get everyone SIN # and info and do it for them.

Thank you in advance,
Any tournamant win over $5k will get 30% withheld. There is a way to get a decent portion of that back once you get back to Canada, you will have to talk to a tax lawyer who is familiar in retrieving the withholdings.
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Old 11-17-2011, 10:29 PM   #1793
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Re: Canadian Online Poker Tax Thread

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If you are Canadian and stake players in cash games, or buy action from tournaments, are either of those taxable? Are they treated the same as just playing poker, or is it different?
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Originally Posted by TaxGuru View Post
Conceptually the treatment of staking maps on to the treatment of poker winnings.

If the player being staked is professional and has a REOP, then by staking that player you would have a REOP and you should be taxable on staking gains (and staking losses should be deductible).

If the player being staked is a recreational player, then by staking that player you would not have a REOP and any staking gains should not be taxable (and staking losses should not be deductible).

I believe that any other approach to the question would allow for work-arounds.

I should mention that in addition to the tax issues, staking could result in securities law issues. I'm cringing just thinking about running these staking arrangements through an "investment contract" analysis...
What would your opinion be about being backed for large live buy in tournaments? Would anything be different if playing on your own money?

Playing 100 of these or less per year I feel like it would be very hard to judge if there is a REOP, especially with the associated travel costs.
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Old 11-18-2011, 03:36 AM   #1794
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Re: Canadian Online Poker Tax Thread

I'm curious, since income tax in Canada is based on residency(right?), is it possible to not be a resident of anywhere? From reading, it seems like you can be a resident of certain countries without being a tax resident(ie : you can get a residency permit somewhere, but you arent a tax resident unless you spend >183 days there). Would it be possible to basically travel the world and not be a tax resident anywhere? As far as I can tell you need to establish residency somewhere else in order to not be considered a resident of Canada, but does that mean you need to be a tax resident there, or just a resident?


Its fairly possible that my post is full of wrong information/assumptions, so sorry about that. If anybody could give a good answer it would be appreciated.


edit :

Alternative question, where is it easy to become a resident? Anywhere that you can get residency and you don't actually have to be there?(or don't have to be there long)

I realize these questions probably have long complex answers, so any links to good places to read about it would be good too.

Last edited by Curious George; 11-18-2011 at 03:53 AM.
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Old 11-18-2011, 04:40 AM   #1795
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Re: Canadian Online Poker Tax Thread

I kind of butchered the question, so lets rephrase.

If a person who was born in Canada cuts all residential ties with Canada and becomes a resident somewhere else, but does not qualify as a fiscal resident in that place(due to spending lots of time travelling and not much time there), do they pay taxes?
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Old 11-18-2011, 06:44 AM   #1796
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Re: Canadian Online Poker Tax Thread

If you don't live in Canada for a certain amount of days then you don't pay taxes.
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Old 11-18-2011, 12:44 PM   #1797
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Re: Canadian Online Poker Tax Thread

Try here as a start: http://www.taxwiki.ca/IT-221+Determination+of+Residence
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Old 11-18-2011, 12:44 PM   #1798
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Re: Canadian Online Poker Tax Thread

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If you don't live in Canada for a certain amount of days then you don't pay taxes.
Not quite right: http://www.taxwiki.ca/IT-221+Determination+of+Residence
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Old 11-18-2011, 04:15 PM   #1799
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Re: Canadian Online Poker Tax Thread

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Thanks, I read that and it has some good information. I'm still sort of confused on the issue of fiscal residency vs residency. I'll throw up a hypothetical to better explain where I'm confused


Say somebody cuts all residential ties with Canada(no house, no lease, etc), has no property in Canada, no spouse, no kid. They have other family and visit a few times a year(maybe 8 weeks in 2-3 week chunks). You get property or a year long lease and a residency permit somewhere else that determines taxation based on residency. You stay there for a couple months, but not the full 6 months to be a fiscal resident. You spend the rest of the time travelling. Where do you pay tax?

Is there anywhere that you can be a fiscal resident without staying there? It seems like Paraguay is like that, but I might be missing something.

Thanks
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Old 11-18-2011, 04:56 PM   #1800
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Re: Canadian Online Poker Tax Thread

In Canadian law you have to be fiscally resident somewhere. See Churchill v. Canada (TCC, 1991):

"Mr. Justice Mahoney touches the point when he says in the case Reeder vs The Queen at page 5163 D.T.C. (4.02(1)) that:
The matter of ties within the jurisdiction asserting residence and elsewhere runs the gamut of an individual's connections and commitments: property and investment, employment, family, business, cultural and social are examples, again not purporting to be exhaustive. Not all factors will necessarily be material to every case. They must be considered in the light of the basic premises that everyone must have a fiscal residence somewhere and that it is quite possible for an individual to be simultaneously resident in more than one place for tax purposes."
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