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Thread ID: 91991 2008-07-25 01:56:00 Do you bet at the tab or casino? richgamer (13244) PC World Chat
Post ID Timestamp Content User
691964 2008-07-26 09:36:00 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.
porkster (6331)
691965 2008-07-26 19:40:00 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.
andrew93 (249)
691966 2008-07-28 02:22:00 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 (13244)
691967 2008-07-28 02:23:00 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 .
richgamer (13244)
691968 2008-07-28 02:30:00 Well, here's one answer (www.yovich.co.nz)

As this site says: Remember you will pay tax on the interest that is earned.
Speedy Gonzales (78)
691969 2008-07-28 03:09:00 @ 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. johcar (6283)
691970 2008-07-28 04:00:00 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.
utopian201 (6245)
691971 2008-07-28 04:36:00 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. johcar (6283)
691972 2008-07-28 07:39:00 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 (249)
691973 2008-07-28 08:18:00 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....
andrew93 (249)
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