Everything is taxed in Canada, if you are a drug dealers you serve 10 years in jail when you come out they may come to you with penality because your did not declare your revenue.
They don't care about poker because you didn't win enough to worth spending time on your case. A really good recreational player, he was also a dentist, he withdraw 150K and a year later the gouvernement was knocking at his door.
Actually 'everything' is not taxed in Canada.
As far as drug dealers paying taxes on income gained from dealing drugs, they'd first need to be charged & convicted with possession of proceeds of crime. Once these proceeds are proven to be from illegal activity, only then will you possibly have Revenue Canada come after you... and not typically for 'taxes'.. instead more likely you'll receive a fine (this is what almost happened to me in 1989. The law re: proceeds of crime was new & I was able to beat my charges (although subsequently convicted on others). Police were forced to return every penny to me... and prior to this, Revenue Canada visited me in jail, advising me I was looking at a $25,000 fine and 6mos jail (for the tax evasion).... BUT they too were unable to proceed and instead visited me again (while in custody) asking that I please file taxes from here on in... and at that point in time.. I owe them nothing... they owe me nothing.
There are other things that are not taxed in Canada. Inheritance money. Poker winnings. Lottery winnings.
All
gambling winnings are tax-free.
Unfortunately it seems that most of the online
poker sites are pulling out of Ontario.
partypoker announced it just recently as well but did say they would be offering something up for segregated player pools sometime in future.
