Radonjic v. Canada Revenue Agency, 2013 DTC 5152 [at at 6352], 2013 FC 916 -- summary under Business Source/Reasonable Expectation of Profit

By services, 28 November, 2015

Russel J found that the Minister's decision (in a s. 152(4.2) application) to treat the taxpayer's online poker winnings as income lacked intelligibility and justification. The Minister indicated that the taxpayer had a "system" to win, but did not identify what that system might be - moreover, winning does not prove the existence of a system - this is exactly the kind of retrospective approach rejected in Leblanc (para. 52). Russel J also stated (at para. 52):

  • "chance remains the predominant factor in whether they [online poker players] win or lose";
  • the use of winnings to finance a mortgage was no indication of running a business; and
  • the taxpayer's cutting back on other work and income during poker wins was no indicator of running a business with a reasonable expectation of profit.
Topics and taglines
Topic
Income Tax Act - s. 3(a) - Business Source/Reasonable Expectation of Profit
Tagline
substantial online poker winnings were not income
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
337735
Extra import data
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