Complained about the tax - got to keep 1.6 million in gain

Complained about the tax - were allowed to keep 1.6 million in random winnings from casino

According to the American Tax Act (section 5-50, first paragraph) shall Random gains are considered taxable income if the value exceeds NOK 10,000.. This includes gains from the casino, lottery games and winnings you win in competitions.

A Swedish resident in Norway won NOK 1,647 549 distributed among several casino winnings with foreign gaming companies in 2013. The taxpayer provided no information on this to the Tax Administration. This was discovered under control, and the player was sent tax claims.

It was also announced that it would be considered whether the player should be imposed on an extra tax claim, ie additional tax. The player complained, and eventually won. Find out what rules really apply to tax on random gains from casino games!

Complaints about decisions of tax on random gains

The Swedish player complained about the claim for tax on random gains. She pointed out that she was unaware that there was a tax on casino winnings when she won. The player also points out that she has lost more than she has won and that she suffers from gambling addiction.

The player receives work clarification money from NAV, and is a part -time student next door. She believes that her desperate financial situation means that she is unable to pay a large tax claim. She asks that human considerations be taken into account.

What rules apply to tax on casino winnings?

The regulations in sections 5–50 (first paragraph) of the Tax Act say that gains from the casino are taxable if the value exceeds NOK 10,000. Single gains under NOK 10,000 are not taxable.

The player in question could not show that the payouts from the online casino consisted of winnings with value below NOK 10,000. The transfers of random gains to her bank account were generally greater than this.

Refusal for taxes on random gains

The tax authorities were based on the transfers between the casino and the bank account to determine the size of the winnings. The player could not refer to game history, which indicated that the winnings were less than NOK 10,000 per piece. The tax claim was therefore not withdrawn.

The tax office also did not find the opportunity to take into account the player's difficult financial situation or life situation.

The Secretariat and the Tax Complaints Board are looking at the complaint

The Secretariat prepares complaints for tax complaints, and accepts the taxable player's case. The secretariat found that the winnings the player won in 2013 cannot be regarded as "random gains".

Random winnings should be winnings the player wins unexpectedly or at least not planned. The player in question has played Casino games Over a period of many years, and can document great gaming activity through the transaction history.

The secretariat found that the gambling is not sporadic or random. The player had deposited more than NOK 1 million in his player account at the casino, which speaks for a large scale gaming. It was decided that there is no legal basis for claiming tax from the player.

Short summary and thoughts on the decision

American players who play casino games or bet on sports at foreign gaming companies should initially pay taxes on random gains that exceed NOK 10,000.

The player who won NOK 1.6 million in a number of winnings could not show that the individual gains were less than NOK 10,000.

Nevertheless, the complaint about the tax claim was taken into account by the Secretariat and the Tax Complaints Board, because the gains could not be regarded as "random gains". This is partly due to the player playing on a very large scale, and had invested over NOK 1 million.

This case shows that it is possible to release tax on casino wines. However, the case is special. The main rule is therefore that you have to pay tax on casino winnings that exceed NOK 10,000.