Sharing winnings

[Kelarny]

Hi All,
My wife and I play the same Western Canada Lotto 649 numbers each week and are wondering if anyone has an answer to this:
If we were to win big how could we legally share the winnings among others without Federal or Provincial tax burden to the recipient or us?
I know our winnings would be tax free, it's when we give some away is what's in question.
I was searching through Canada gift tax laws and from what I get out of it we can only give away up to $500,000 to a non charitable organization one time without tax penalties to both parties.
An example:
Win this weeks Lotto 649 of $30,000,000
Share $20,000,000 with sixteen people. (this doesn't include immediate family)
Approx. 4.1667% of total winning for each of the sixteen people- $1,250,010 ($20,000,160 total)
Am hoping an Income tax lawyer or others that have been in this situation can answer the question.
We plan on winning soon...don't we all.. . Just would be nice to have all the ducks in a row when and if we do.

 

[jfsullivan35]

lottery winnings to friends

There is no gift tax in Canada for lottery winnings (cash) so you can give all you want. but giving money to children under 18 or spouses can be taxed in certain cases. if you and your spouse claim the prize equally then there is no tax on winnings .
jim

 

[Icewynd]

Hi All,
If we were to win big how could we legally share the winnings among others without Federal or Provincial tax burden to the recipient or us?

Ah, to have such a problem!

I think the answer is: when you win you hire the best tax lawyer around to structure things properly for you so you pay no (or minimal) tax.

P.S. Can I be your best friend?

 

[Amazone]

If I may...please consult a ''fiscalist'' to have a better answer. It might cost you a few bucks but save you a lot in a long run.

There is no tax on winning, however there might be indirect tax if you give money to your family, especialy if they are your dependant. My tax courses are far, so in this case If I won a big amount I would consult a ''FISCALIST'' Wich are specialist in all things regarding taxes, fiducy etc

 

[Amazone]

If I may...please consult a ''fiscalist'' to have a better answer. It might cost you a few bucks but save you a lot in a long run.

There is no tax on winning, however there might be indirect tax if you give money to your family, especialy if they are your dependant. My tax courses are far, so in this case If I won a big amount I would consult a ''FISCALIST'' Wich are specialist in all things regarding taxes, fiducy etc

 

[daleks]

before you present the winning ticket,
fill in a group form,listing everyone who
you want to benefit,noting what percentage
they are entitled to.they will share the cost
of the ticket with you on the same percentage
basis.put your name on the form as trustee.
each provincial lottery corp has those forms
available
good luck.

 

[Kelarny]

Thanks for all your replies,
Amazone, I'll take your advice and check into it because of possible indirect tax.
daleks, I was thinking I could do it that way but haven't found those forms.