dave@utcsrgv.UUCP (Dave Sherman) (01/31/84)
From: rcj1@ihuxi.UUCP:
-- I recently read that a Toronto couple won the Canadian
-- Lottery worth $13 million Canadian money.
-- Question is, the article said that the money was tax free!
-- Does this mean that the prize was greater then $13M and
-- taxes already taken out or Lottery winners are not subject
-- to any taxes? What's the scoop? Also this lottery is available
-- through the U.S Mail and if a person in the U.S. should win
-- their Lottery ticket could be confiscated at customs. True?
The prize was not greater. Lottery winnings are not "income" under the
Income Tax Act (Canada), while they are recognized for the purposes of
the U.S. Internal Revenue Code.
Confiscating tickets at U.S. Customs has nothing to do with whether they
are winning tickets or not. Lottery tickets may not be brought into the
United States and are shredded by Customs if they're found.
Dave Sherman
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{allegra,cornell,decvax,ihnp4,linus,utzoo}!utcsrgv!davedave@utcsrgv.UUCP (Dave Sherman) (01/31/84)
Quoting preece@uicsl.UUCP:
-- Apparently Canada, like England, doesn't consider lottery/pool
-- winnings to be taxable income. Seems a reasonable position if
-- you're running an official state lottery.
The reason has nothing to do with it being an official state lottery.
Lottery winnings were non-taxable in Canada long before government lotteries
began (originally to finance the 1976 Montreal Olympics).
The Canadian tax system generally recognizes income attributable to
a "source", such as employment, business, or property. Windfalls (e.g.,
finding money on the street) are not considered to have a source,
and do not have the characteristics of income. This is in contrast to
the U.S. law, which considers windfalls to be income.
Dave Sherman
The Law Society of Upper Canada
Toronto
--
{allegra,cornell,decvax,ihnp4,linus,utzoo}!utcsrgv!dave