German pro's tax challenge
Friday, 24 August 2012
A poker player in Germany has challenged a legal ruling that he must pay taxes on poker winnings. According to tax-news.com, the test case in Cologne will determine whether poker players are partaking in a commercial activity, and therefore subject to tax.
The case boils down to the old question of whether poker is a game of skill or luck. The unnamed player is appealing a demand that he is liable to pay tax on $1m in poker winnings between 2001 and 2008. Authorities argue that poker is a commercial activity, reliant on skill while the plaintiff says that his success has mainly relied on luck.
Most gambling winnings in Germany are untaxed as they are considered games of chance.
The mystery player, along with many other German poker pros will be hoping that the court doesn't follow the lead of American judge Jack Weinstein who ruled that poker was a game of skill at a hearing in New York earlier this week.
A verdict is expected later this year.