Tips received in Canadian casinos are not tax free

A lot of service workers rely on tips to add up to their usual income. Waiters, bartenders, hotel staff and even casino workers receive extra money for their good work and serviceability, but it seems that this extra cash is taxable according to Canada’s Federal Court of Appeal.

It’s true. A recent court ruling decided that workers from Canadian casinos have to report the money they receive in the form of tips when they do their taxes each year. The total amount of money must be filled in line 104 of the income tax and benefit return form. In the Quebec region, an employee has to first report these amounts to their employer.

It all started when a slot attendant working in Burnaby, British Columbia, did not report his tips, resulting in a difference amounting to thousands of dollars between his income without tips and his income with the extra money. He claimed that he received the money from clients that won big jackpots at slots machines, and as these winnings are tax free, then so are his tips.

Judge Diane Campbell agreed that according to the law, casino prizes are not subject to taxes as they represent non-constant income, but tips differ in this aspect, as all money received from performing good services are taxable according to The Income Tax Act. In the end, the slot attendant was accused of gross negligence as the court concluded that, with his knowledge and education, this could not have been just a simple error.

This creates a precedent that affects both the casino workers and patrons. To keep within the lines of legality, all employees have to keep track of all they receive and then properly report it. At the same time, players that get lucky and want to share their fortune should know that the monetary gifts they give will be taxed by the state.

It may seem like the current state of affairs is not that special. You receive money for your work, the state taxes you. But players have to keep in mind that Canadian casino workers don’t always have lush salaries. In fact, most of them work for minimum wage with both day shifts and night shifts. That is why appropriate casino etiquette requires players to tip a small amount for every service delivered and a minute part of the winnings received from a jackpot.

Compared to other places in the Old World, Canadian gambling is at the beginning of its journey, as it was only legalized in 1969 in all the 10 provinces. If you’re passionate about gambling, you can also discover more casinos in the online environment. Things may be adjusted along the way so the results would be in the benefit of both the players and the House (and all its employees). For now, players should use the expedient advantage of coming home with the same amount they won at the table or at the game machine as only 15 other countries have the same 0% tax on jackpots.

So keep in mind that whether you work or want to work in Canadian casinos, you have to keep track of your tips and file them properly. And if you are a casino enthusiast from Canada or in transit, the rule is to tip and tip well because remember that casino workers root for you the most!