By poker_boy | 1 Comment
Last updated: Monday, June 14, 2010 | 92 Views Tags: australia, earnings, full tilt, gambling site, governent, internet gambling, player history, playing poker, tax question
This week’s question is a good one. Let’s have a look:
I understand if poker is conducted as a business and is your only source of income it has to be taxed,
how do you avoid paying tax? is there a way? what measures should i put in place to avoid paying tax?
Should i get another job? so that i can argue its not my only source of income, I play on Full Tilt i know for a fact they keep their operations very secret, wouldn’t even tell me where their head office is in Aus, does the governent have the authority to request player history in Australia, and would that internet gambling site have to give that sort of information (they are based someone in england or canada)
i keep records but if i just say i don’t have records will that suffice?
also do i have to mention my online name, or can i not do this, and can i give them a fake name
So don’t think they would be unable to get hold of your records. If you say you don’t have the records, they can get them. The powers the tax office has under sections of the tax act are massive; they have more right to enter your house than the police in some circumstances.
It also doesn’t matter if you have another job. If you are running your poker playing like a business and there is an expectation that you will make money from it, then you have to declare the income.
Tax avoidance once it is discovered carries penalties extending to jail time and you can be looking at monetary penalties of up to 95% of the back tax you owe where your avoidance is deliberate. e.g. if you are audited and the tax owed is $50000, the penalty can be as high as $47500 on top of the tax due.
Better off just paying the tax to start with just like every other person has to and lodge your tax return each year July 1 - Oct 31.
Mike Smith
