CANADIANS: Do any of you use a CCPC for tax purposes?
 

I remember from an old, long thread on Canadian poker taxes a Canadian accountant mentioning how he thought the CCPC (type of corporation) was the best system for claiming taxes. I've been inquiring about it. I'm really interested to find out if anyone has used this with success, or if not, what systems you are using to file taxes (if any). Not to dredge up the subject again but I'm thinking of moving back to Canada and the amount of taxes I can expect to pay on my poker winnings is of great importance to my decisions.

Re: CANADIANS: Do any of you use a CCPC for tax purposes?
 

If you're not a pro player than the taxes are 0.

If you are a pro and you have no other income, then expect to pay about 30% if you make 30-70k and 40% on the portion over 70k.

If you use a CCPC effectively, you might be able to reduce that to 20-25%.

If you have a spouse, kids, other income, house and an otherwise complicated tax situation, I've seen scenarios where someone making 100k in poker earnings and 30k in other income would have a tax liability of less than 15k.

You would need to talk to a knowledgable accountant as to your particular situation and how best to manage taxes.
A CCPC is only an option for serious, pro players making more than 70k or so on a regular basis who preferably does not spend every penny of their income, who plans to play for a living for many years and who wants to be very flexible tax-wise in the future.

I have worked with 5-6 people using this approach (a mix of one starting in 2003 and some starting in 2005, some in 2006) and it can be effective in more complicated situations.

Since the government has taken away the ability of using minor children for income-splitting recently, it is a somewhat less effective method but it still has benefits.