It's all coming up aces for Canadian poker star Jonathan Duhamel..Blacklock's Reporter says Duhamel, the first Canadian to win the World Series of Poker, beat the Canada Revenue Agency in Tax Court and does not have to declare winnings as taxable business income..“The ability to produce a gain in the game of poker is unpredictable,” court was told..“Luck largely prevails over skill in the game of poker since it would take an abnormally high number of hands for skill to prevail over chance. It is not possible to control the results.”.Duhamel, of Montréal, in 2010 won the World Series in Las Vegas and claimed a net prize of $4,866,117 that year. He subsequently acknowledged poker winnings of $383,916 in 2011 and $106,775 in 2012. Lawyers told tax court the profits were tax-free windfalls..Auditors reassessed Duhamel’s tax returns and concluded his poker winnings appeared to be business profits..“Earnings from poker gaming activities will only be considered business income for Mr. Duhamel if he had the predominant subjective intention to profit from the activity and this activity was carried out in accordance with objective standards of a serious business person,” wrote Justice Dominique Lafleur..Duhamel, a student at the University of Québec, became a professional poker player after winning $70,000 at a tournament in Prague in 2008, court was told..Following his Vegas win, Duhamel signed a US$1-million contract with promoters to “act as a spokesperson” and published a ghostwritten 2011 book that “attempted to demonstrate skills in the game of poker including use of various strategies.”.Duhamel retired at 28..“Mr. Duhamel does not need to be gainfully employed,” wrote the court..Evidence showed results of his poker playing were uneven after Vegas. Duhamel entered the World Series of Poker in 2012, 2012, 2013, and 2014 “but did not win anything” and by 2015 had slipped in rankings to 565th..“In 2016, 2017, and 2018, Mr. Duhamel only played in face-to-face tournaments and a few private games,” wrote Lafleur. “In 2016 he suffered a loss of $194,308. In 2018 he suffered a loss of $290,317.”.Duhamel’s lawyers successfully argued “since poker is a game of chance the winnings are not taxable under the Income Tax Act since there could be no business,” noted Lafleur..“The Court does not have to determine whether chance prevails over skill in poker but simply establish there is an element of chance in the game.”.Duhamel married a teacher and is now a stay-at-home father to two children. Duhamel testified he continued to play poker from time to time “out of his passion for the game.”
It's all coming up aces for Canadian poker star Jonathan Duhamel..Blacklock's Reporter says Duhamel, the first Canadian to win the World Series of Poker, beat the Canada Revenue Agency in Tax Court and does not have to declare winnings as taxable business income..“The ability to produce a gain in the game of poker is unpredictable,” court was told..“Luck largely prevails over skill in the game of poker since it would take an abnormally high number of hands for skill to prevail over chance. It is not possible to control the results.”.Duhamel, of Montréal, in 2010 won the World Series in Las Vegas and claimed a net prize of $4,866,117 that year. He subsequently acknowledged poker winnings of $383,916 in 2011 and $106,775 in 2012. Lawyers told tax court the profits were tax-free windfalls..Auditors reassessed Duhamel’s tax returns and concluded his poker winnings appeared to be business profits..“Earnings from poker gaming activities will only be considered business income for Mr. Duhamel if he had the predominant subjective intention to profit from the activity and this activity was carried out in accordance with objective standards of a serious business person,” wrote Justice Dominique Lafleur..Duhamel, a student at the University of Québec, became a professional poker player after winning $70,000 at a tournament in Prague in 2008, court was told..Following his Vegas win, Duhamel signed a US$1-million contract with promoters to “act as a spokesperson” and published a ghostwritten 2011 book that “attempted to demonstrate skills in the game of poker including use of various strategies.”.Duhamel retired at 28..“Mr. Duhamel does not need to be gainfully employed,” wrote the court..Evidence showed results of his poker playing were uneven after Vegas. Duhamel entered the World Series of Poker in 2012, 2012, 2013, and 2014 “but did not win anything” and by 2015 had slipped in rankings to 565th..“In 2016, 2017, and 2018, Mr. Duhamel only played in face-to-face tournaments and a few private games,” wrote Lafleur. “In 2016 he suffered a loss of $194,308. In 2018 he suffered a loss of $290,317.”.Duhamel’s lawyers successfully argued “since poker is a game of chance the winnings are not taxable under the Income Tax Act since there could be no business,” noted Lafleur..“The Court does not have to determine whether chance prevails over skill in poker but simply establish there is an element of chance in the game.”.Duhamel married a teacher and is now a stay-at-home father to two children. Duhamel testified he continued to play poker from time to time “out of his passion for the game.”