Lotto Max win is tax free
When Marie and Kirby Fontaine scooped the first $50 million Lotto Max Canada win we wonder if they realised that there would be no tax to pay on the massive jackpot? According to the Canadian Tax policy the Lotto Max win is tax free simply because the Canada Revenue Agency believe that enough revenue is already generated from ticket sales making it 'an important source of funds for charities, provincial governments and other non-profit making organisations'.
South of the Canadian border it is a totally different story but in Canada the rule of thumb is that unless you are “carrying on a business of gambling” or are considered a professional gambler, all winnings generated from betting, gambling or lotteries are tax free.
The government had previously tried to work out the loss by not taxing gambling winnings but gave up in the end because of incomplete data about winnings. The data for some forms of gambling, like bingo and lotteries, are considered to quite concise but when addressing other areas like casinos , slot machines and horse betting, the data is ‘fragmented.’
Back in 2004 one Canadian Premier did consider a tax on the lottery and gambling winnings but this never came to fruition.
So, not only are the Fontaines’ celebrating a massive Lotto Max win, but also the avoidance of any tax cost on the world lottery jackpot amount.
Don’t forget to get in on the Lotto Max Canada action by visiting your local outlet and buying a couple of tickets, after all, if you aren’t in it, you can’t win it!
Written by Kath C