0
$ £

Canadian Loses Case To Write Off Losses

A Canadian Federal Court of Appeal has ruled against a Toronto man who tried to write off his gambling losses, claiming the man was not a professional gambler and therefore cannot claim his losses.

A report by the CBC states that Giuseppe Tarascio claimed that he earned most of his money through gambling, although he had a full time job at Bell Canada. Tarascio claimed his winnings and deducted his losses, which were $40,933 in 2002 and $56,000 in 2003.

When the Canada Revenue Agency reviewed Tarascio's return they disallowed all of his deductions. Tarascio then decided to take the issue to tax courts, where he presented his evidence and lost again.

The tax court claimed that Tarascio had no systematic method for gambling and did not practice his skills. Tarascio then admitted that the thrill of gambling is what motivated him, which did not help his case.

Colin Campbell, a Western Ontario legal expert said that whether or not an individual's write offs are legitimate depends on whether or not the activity is personal or commercial.

“That's the dividing line. And in the case of gambling, the courts have generally found that gambling is predominately a personal activity.” Campbell said.

Share this