[Moderator edit (MF): fixed spelling in subject]
inane: I am pretty confident that the NZ Govt actually charges a levy on gambling institutions (TAB, Casinos, Gaming Machines, lotto, etc)
and the levy is based on the amount ratio of bets to winnings or somesuch,
the only time you have to pay tax on income through gambling earnings is if you do it for a profession.
eg, if your main income is as a Poker player or gambling on the horses.
I found this useful snippet
Lotto winnings are non-taxable. Any interest derived from those winnings, once they are in an investment portfolio, will have resident withholding tax deducted from them, however the capital amount remains non-taxable. The same goes for other ‘luck’ based gains (eg the horses, gambling and the pokies). You will, however, be taxed on such winnings if you are in the business of, for example, gambling or horse racing.
freitasm: But do you that amount every month, on a regular basis? A one off doesn't count.
inane: Well the IRD true to form, totally unhelpful.
my query: Hi There, I was engaging in an online disc
ussion, and tried to find the relevant inf
ormation but was unable to and hoped you w
ould be able to help.
Regarding income from Gambling in New Zeal
and, under what situation would you have t
o pay tax,
Eg, if I worked in job X (say salaried wit
h tax code M) and earned $4500 per month,
but also gambled on the horses through the
TAB and managed to be quite successful an
d was able to regularly make $5000 per mon
th from that, would that consitute of bein
g "in the business of gambling"
or professional gambling or main income??
if not, what sort of situation would one n
eed to be in whereby they would be conside
red to be gambling as their main income an
d therefore have to pay tax on their earni
And The IRD Responds:
I am unable to respond to your original query by email, at this point of time, as you have requested personal tax information