Originally Posted by Henry17
The issue Radonjic is the reasonableness of CRA in denying Radonjic his adjustments. It has nothing to do with the issue of whether his winnings are income from a taxable source or not. He should have been allowed to make his adjustment independently of the separate taxability issue. Radonjic is an admin law case rather than a tax law case.
Despite being successful in his trial there is nothing about the Radonjic decision that would prevent CRA from auditing Radonjic and deciding that the winnings are from a taxable source. Radonjic would then have to go to Tax Court to have another trial on that issue.
So in short hdskate is correct.
Let me clarify Henry, when I say you are wrong. You are absolutely correct when you say the winnings of a professional gambler are taxable. This is true. However, where you are wrong is your opinion that the CRA can prove this easily with the right argument. It's very very hard, if not impossible for the CRA to successfully argue gambling winnings are taxable because the player is a professional.
I went the HARD route going to fed court instead of Tax court. Tax court I would have had an easy win. This is supported in my judgment where TWICE the judge made comments to that effect. He inserted those comments in his decision even though he knew that was not the question at hand in my judgment.
Justice Russell was essentially blatantly saying that I would have won in Tax court as well:
"If I examine and assess all of the factors at play in this case, I might well agree with the Applicant that,
in my opinion, he was not running a business at the material times and was engaged in a personal
endeavour. However, that is not the role of the reviewing Court."
"Had the Applicant made an appeal to the Tax Court he might have succeeded."
Obviously I understand what the Justice is REALLY saying, as I'm the participant, as opposed to an interested reader.
The only winning poker players that would have trouble with the CRA are the famous tourney pro types who have endorsements, and write books, etc.