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View Full Version : Do you bet at the tab or casino?



richgamer
25-07-2008, 12:56 PM
Do you have to pay tax or declare your income on your tab winnings? same goes for casino winnings?

Speedy Gonzales
25-07-2008, 01:19 PM
Dont think so, well dont know about the casino, I dont bet at the casino.

But we do online betting, we've never paid tax or declared what we've won.

Dont think there's any legal obligation / or requirements to either

What you win, you keep

Renmoo
25-07-2008, 03:06 PM
Do you actually win from bettings? Share some of your secrets with us! :D

pctek
25-07-2008, 03:11 PM
LOL "richgamer".

How do you make money from betting? Own the Casino. Anything else is for suckers.

jamesbondsanyo
25-07-2008, 09:43 PM
really good!

andrew93
26-07-2008, 12:43 AM
If your intention is to make a living from gambling, or if this is anything other than a hobby, then yes it is taxable.

wratterus
26-07-2008, 11:09 AM
Sure it's taxable, but why waste your money?

Spend it on your missus or something.

gary67
26-07-2008, 02:40 PM
Sure it's taxable, but why waste your money?

Spend it on your missus or something.

thats the same thing surely?

johcar
26-07-2008, 03:27 PM
thats the same thing surely?

But it's less of a gamble.

andrew93
26-07-2008, 07:38 PM
But it's less of a gamble.

Unless her first name is Heather and last name is Mills.

porkster
26-07-2008, 08:36 PM
Any gambling you do in New Zealand has already got the tax paid. TAB, Lotto, NZ Casino wins are tax-free (well, tax prepaid). Overseas wins need to be declared (even if foreign tax is paid).
Interest from winnings (eg held in trust till collected) also need to be declared.

andrew93
27-07-2008, 06:40 AM
Any gambling you do in New Zealand has already got the tax paid. TAB, Lotto, NZ Casino wins are tax-free (well, tax prepaid).
The cost of placing a bet is used (in theory) with funds that are tax paid, but as I stated earlier, if your intention is to make a living from gambling, or the hobby is no longer classed as a hobby, then the winnings are taxable. This is not opinion, it is fact.

richgamer
28-07-2008, 01:22 PM
So say you won $100,000 from lotto and they put the money into your bank account and the money will be making interest monthly, do you have to declare that? I thought the IRD will automatically take the tax on interest cuz it appears on your bank statement as "tax on interest" doesn't it?



Any gambling you do in New Zealand has already got the tax paid. TAB, Lotto, NZ Casino wins are tax-free (well, tax prepaid). Overseas wins need to be declared (even if foreign tax is paid).
Interest from winnings (eg held in trust till collected) also need to be declared.

richgamer
28-07-2008, 01:23 PM
So if you have a one off win of 1million dollars and you quit your job to live on that million, would you have to pay tax on it?



The cost of placing a bet is used (in theory) with funds that are tax paid, but as I stated earlier, if your intention is to make a living from gambling, or the hobby is no longer classed as a hobby, then the winnings are taxable. This is not opinion, it is fact.

Speedy Gonzales
28-07-2008, 01:30 PM
Well, here's one answer (http://www.yovich.co.nz/finplan/20031001.php)

As this site says: Remember you will pay tax on the interest that is earned.

johcar
28-07-2008, 02:09 PM
@ richgamer - is this a hypothetical scenario, or are you a big winner? If the latter, I would recommend you consult a tax accountant to get 'official' advice. From my own experience, the IRD is a minefield of complex rules and regs - only a qualified professional should be handing out advice on this sort of scenario.

utopian201
28-07-2008, 03:00 PM
So say you won $100,000 from lotto and they put the money into your bank account and the money will be making interest monthly, do you have to declare that? I thought the IRD will automatically take the tax on interest cuz it appears on your bank statement as "tax on interest" doesn't it?

Yes, the interest is taxed, with the bank taking the tax out for you. You must have the correct RWT rate for your income (19.5, 33, 39), otherwise you will be liable for additional tax at the end of the year.

johcar
28-07-2008, 03:36 PM
But depending on your level of other income for the year, you may still end up owing the tax department. Which is why I say, if this is a real situation, get professional advice.

andrew93
28-07-2008, 06:39 PM
So if you have a one off win of 1million dollars and you quit your job to live on that million, would you have to pay tax on it?

If, as you say, this is a one-off win (i.e. a windfall), which implies you aren't doing this for a living, then the gain is not taxable.

andrew93
28-07-2008, 07:18 PM
On 2nd thoughts, is this a one-off win based on a one-off purchase? (which was my assumption) Or is it a one-off win after a number of unsuccessful purchases? It comes down to your intentions at the time you bought the ticket(s). If this was a one-off win by a syndicate set up with the intention of winning the big one, then the gain would be taxable. This is also based on NZ tax law.

However, I am a little sceptical given your title. If you are, or intend to, become rich through gambling, then your intentions are quite clear and anygains will be taxable.

In summary : not enough info....

ijkl864
29-07-2008, 08:30 AM
thanks a lot!