A Surrey, B.C., man has claimed the $32-million Lotto 6/49 Gold Ball jackpot from the Sept. 19 draw, the British Columbia Lottery Corporation (BCLC) says.
Amritpal S. claimed the prize at BCLC's Vancouver office on Sept. 23, four days after the draw. He told BCLC he checked the ticket in his car and first read the amount as $32,000.
He said he wants to help his parents and sister, buy a house and buy a car, and is taking time to decide on the rest.
How the tax rules apply
The Canada Revenue Agency says lottery winnings generally don't have to be reported as income. They aren't taxed as income or as a capital gain.
Money earned on the prize is different. Interest, dividends and capital gains from investing it are taxable like any other investment income. A 3 per cent return on $32 million is close to $1 million a year in taxable income.
Canada has no gift tax, so money given to family isn't taxed as a gift. But attribution rules can apply when someone gives money to a spouse or to a child under 18: if that money is invested, the income it earns can be taxed back in the hands of the person who gave it. Gifts to adult family members generally aren't caught by those rules.
A family unit can claim only one principal residence at a time. Any increase in the value of a second property could be taxable as a capital gain when it's sold.
If gambling is causing problems for you or someone you know, Alberta's Addiction Helpline offers free, confidential support 24 hours a day at 1-866-332-2322.
Sources
Surrey Resident to Help Family and Buy Dream Car After Winning $32-Million Lotto 6/49 Jackpot, BCLC
Amounts that are not reported or taxed, Canada Revenue Agency
Income Tax Folio S1-F3-C2, Principal Residence, Canada Revenue Agency
Attribution rules, Canada Revenue Agency
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