| | |  | Last Updated: Wednesday, February 27, 2008 |  | | | Hachem Gets to Keep His Gambling Winnings
- Monday, 26 Dec 2005
Imagine winning millions of dollars while participating in the poker gambling event of the year, only to fond out that you might have to give the state its share of the winning. It hasn’t been easy on Joe Hachem from Australia who recently returned to his native county after winning $10 million gambling at the World Series of Poker in Las Vegas. Hachem, a father of four who resides in Melbourne, defeated poker gambling professionals from all over the world in route to his impressive win back in July.
Upon returning to Australia, talks surrounding the possibility that Hachem might have to share the gambling wealth with the Australian authorities quickly ensued. Some claimed that Hachem needed to pay income tax, which would be subtracted from the $10 million he won at the WSOP. Worried about the possibility of having to cough up millions in tax money, Hachem hired a team of lawyers to help him keep all the money he had won gambling. This week, Hachem received some great news as the Australian Taxation Office ruled that the Hachem would be exempt from paying income tax on his gambling win, since he was pursuing a hobby, not working.
Peter Donovan, one of the lawyers representing Hachem had this to say, “As a result of this finding, the gambling winnings were classified as income derived from a hobby, and thus not subject to Australian tax”. Donovan added saying, “The distinction between the conduct of a business and the mere pursuit of a hobby is often a difficult distinction to draw. However, the fact that you excel at a particular hobby should not be fatal for tax purposes”. | |
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