Poker

WSOP Champ Duhamel Fighting Canadian Tax Authorities Over Millions

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Duhamel has had tons of success at the WSOP.

Jonathan Duhamel is taking the phrase “welcome the variance” to an entire new level.

The 2010 World Series of Poker Centerpiece champion has actually become involved in a tax disagreement with the Canadian government, according to a report from The Canadian

A $1.8 Million Concern

The Canada Earnings Agency declares that Duhamel’s poker activities constitute the running of a company and he’s for that reason accountable for CA$ 1,219,114 in federal back taxes coming from 2010-2012 That number could double with state taxes to Quebec, which would bring the total to approximately CA$ 2.4 million (~$ 1.8 million).

Duhamel, who has won $18 million and sits 33 rd on the all-time money list according to The Hendon Mob, counters that his poker winnings are “the result of possibility.”

Not coincidentally, Canadian tax law does not require payments from winnings stemming from video games of opportunity.

Both sides have set out arguments in the connected piece for the case, which is set to hit the courts next March.

The tax authorities preserve that Duhamel’s poker playing clearly made up an organization and not recreational gaming because he took the video game really seriously, played heavy volume with 40- plus hours each week, and didn’t earn other earnings. They likewise cited his piece swaps as proof he was running a business.

Duhamel’s counter is that has actually never “received specific training” in poker, which luck therefore drove him to the millions he won. He says being identified a professional poker player by sponsoring website PokerStars was purely for marketing purposes.

Jonathan Duhamel with new Bracelet
Did luck or ability trigger this scene?

Unanswered Concerns and Other Notes of Interest

The tax conflict isn’t the only noteworthy thing to come out of the story. The piece from The Canadian supplied some interesting insight into the life and financial resources of a WSOP world champion.

For example, the piece notes Duhamel’s swaps cost him $4.1 countless the $8.9 million he won when being crowned world champion in2010

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In addition, Duhamel’s post-WSOP agreement with PokerStars was spelled out as a contract worth $1 million for the following year. Of that $1 million, $480,00 0 was paid out in cash while another $520,00 0 was offered as competition entries and fees.

It’s also intriguing that the only taxes in question seem to stem from 2010-2012

He likewise maintained his sponsorship with PokerStars through early 2015

There are also some inconsistencies in between his supposed incomes in these years and the cashes credited by Hendon Mob, though they might be comprised by sponsorships and changes in exchange rates.

What are Duhamel’s possibilities of success when the case strikes the courts next March, assuming there’s no settlement?

Answering such a concern would be beyond the scope of this piece, but The Canadian reports that Duhamel’s legal representative plans to absolutely no in on a 2006 case in which two recreational Canadian bettors were cleared of tax liability after a hot streak betting sports.

Nevertheless, it’s noteworthy that many Canadian pros, even the elites, have actually often opted to avoid the WSOP and other U.S.-based events due to the fact that the heavy tax concern strongly hinders their expected value. The withholding treaty with the U.S. integrated with paying typical Canadian taxes makes it a difficult proposition, and if those pros are paying up, Duhamel will likely be anticipated to do so too.

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About Lance Frendsen

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