DAVIE_MAC

Tonights prize is $50m.

The office here have decided to create a syndicate.

Is there a requirement in Canada to have a syndicate contract drawn up for tax and legal reasons anyone is aware of? Cant find anything on the website.

I suggested we should as I would have thought if someone held the ticket they could do a runner, we would have to prove the syndicate & also if one person held the ticket then gave me $10m in prize money surely I would be taxed on it... or not?

All the other office staff said No there is no need in Canada for any of that it's all tax free... They're the locals so they should know best... Yeh??

Any ideas or similar experience anyone has to how it works here in Canada regarding these issues?

Thanks

iaink

Lotto winning are tax free. How that affects the rest of it I have no idea.

No written anything where I work...

DAVIE_MAC

Thanks for that.

Yeh same as UK tax free.. until you hand out the winnings without a contract...

Dont think we have much to worry about anyway...

Cheers

iaink

Any gifted amount of money you receive here is also tax free AFAIK as its not income....

JonboyE

There is no tax or legal reason why you MUST have a syndicate contract. Lotto winnings are not taxable.

However, it makes a great deal of sense to have a simple agreement that says you are creating a syndicate that all signatories will contribute to equally and any winnings are shared equally.

A couple of extra clauses I think are useful:

- a time by which syndicate member must pay up to be considered as "in" a particular draw. Otherwise some people will never pay but will, of course, claim to be in any winning draw.

- a stipulation that the person buying tickets on behalf of the syndicate cannot buy any tickets for themselves or friends and family unless they have handed over the syndicate's tickets. This avoids the situation where the syndicate buys 100 tickets - the person buying purchases 101 - and claim that if any of the 101 tickets wins this is their "personal" ticket.

I have no idea if these would hold up in court, but at least they set out some rules.

Alan2005

When there is one at work (it's only when somebody can be arsed to enter because of a big pay-out) it's cash up front and the ticket numbers are mailed to everyone pre-draw. Seems fair to me.

Generally, I think lotteries are a tax on the poor and stupid, but I do the office one when it's there as an insurance policy. I really don't want to turn up and see their smug faces but if somebody came round and asked me to sign some kind of legal contract first I think I'd tell them to piss off.

Tangram

Here are two forms available in Atlantic Canada for group play. I would think it wise to have some agreement in place.

JonboyE

Me too.

I buy a 649 ticket when the prize exceeds $28M. The expected payout per ticket is then greater than $2 so it is a rational purchase. I've not won a cent.

2008orbust

Lotteries in Canada - are they separate for each region ?

eligibility - can a holidaymaker buy a ticket and win or do
you have to be a PR ?

Alan2005

They'll take anybodies money I believe.

DAVIE_MAC

Thanks all for the replies, much appreciated.

Dave

JonboyE

Some are national, like the 649. Some provincial, like the BC 49.

iaink

A bit of both, but the super lotteries tend to cover multiple provinces and throw up the mega jackpots.

Danny B

Trust me, save your $5 and buy something else. Lotto Max has horrible odds..

Tangram

^^^ What he said. It was the last project I worked on before getting my coat and I would have to agree ( even in comparison with other 'hopeful' lotteries ).