In my opinion, you should take the time to do some research on the tax law that applies to casinos. The law is called the Income Tax Act and it is there for you to know. In this article, I will show you why you have to pay taxes to a Canadian gambling establishment if you win at their casino.
The Income Tax Act states that a person who wins money at a casino is liable for income tax. The amount that you owe may be anything from ten hundred dollars up to $3000. You also have to pay taxes on all winnings over one thousand dollars. All your winnings over two thousand dollars are subject to double taxation.
You can avail of tax relief. To get this tax relief, you will have to make an application with Revenue Canada. It may be a lengthy process but this is something that must be done if you want to minimize your tax liability. If you win at a Canadian gambling establishment and pay tax then you will have no choice but to pay the taxes. This is where tax relief comes into play.
So how can you go about getting tax relief? The first thing that you will want to do is contact Revenue Canada and ask them if they offer tax relief programs. If you have any questions then you can either speak with a representative or visit their web site. If you are unable to locate someone to speak to then you can always visit their site and search for information. You can also try to call Revenue Canada and talk with someone. However, unless you are able to speak to a representative then this is not a good option for you.
If you still think that the amount owed is too much for you then you can consider an IRA. You can use this money to pay off your taxes by investing it in some sort of money market funds. This allows you to invest your winnings, which is tax free, in a mutual fund.
The great thing about these investments is that the IRS does not collect any of your earnings from the IRA until you withdraw the funds from the mutual funds. Once you withdraw the money, then you will only be taxed on the profits you earned. If you choose to hold on to the funds and invest it in the stock market, then you are only going to have to pay tax on the appreciation of the funds. This allows you to save on taxes while earning profits without having to worry about paying taxes.