"This is what I get to keep for myself?"
According to Russ Fox, and Enrolled Accountant who works for Clayton Financial and Tax of Irvine, Calif., crunched the tax numbers for all the final table participants, according to where they are from.
Denmark puts a severe tax burden on those who win big at casinos. For casino wins, Danes owe their government 45 percent on the first 4 million Danish Kroners won and that figure jumps to around 75 percent on anything above that. A $1 is worth about 5.8 Kroners, meaning Eastgate's $9.1 million first-place prize falls easily into the higher rate.
Assuming Eastgate is subject to Danish taxation laws, he is looking at a tax bill of around $6.6 million. But Eastgate recently moved to London and because of that, may not owe a penny. The UK doesn't tax poker winnings. But because Eastgate just made the move to London, Denmark's tax agency, called SKAT, will claim that he moved to avoid the incredibly high tax rate. Fox predicts that somewhere down the line, unless Eastgate simply ups and pays Denmark, both parties will wind up facing an arbitrator in a tax hearing to figure out how much the 22-year-old Dane owes.
If Denmark winds up with Eastgate’s tax dollars, Eastgate will get to keep only $2,491,871 of the $9.1 million paid to first.
Sucks to be him....
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31 comments
its too early...I thought the title said "nailed in Texas"...
that stinks...i'll hide him out @ my house for a small fee
thats just sick... bad beat in life...
That's horrible. It's his money and the country thinks it's their's and they have to give me some of it. There is something wrong with a system that discourages people from earning money.
not so fast Canucks!! Canada and the US have an agreement and any Canadian winning $$ in US casinos has to pay the IRS according to the article I lifted this information from;
Two Canadians finished fifth and sixth: Montgomary of Perth, Ontario and Saharto of Toronto. The tax treaty between the U.S. and Canada calls for 30 percent of the prize money to be withheld by the IRS.
That puts Montgomery’s IRS bill at $929,000 (for winning $3,096,768) and Suharto’s at $725,569 (for winning $2,418,562). Montgomery will owe about $491,000 more to his provincial government.
Just an old lady giving her opinion.
that hurts