The appellant, a world champion poker player, appealed reassessments that included his net poker gains as business income for the 2010, 2011, and 2012 taxation years.
The Minister argued that the appellant was carrying on a business through his poker gambling activities.
The Tax Court of Canada applied the Stewart test to determine if the activities were carried on in a sufficiently commercial manner.
After analyzing expert evidence on whether poker is a game of chance or skill, and reviewing the appellant's risk management, training, and profitability, the Court concluded that the poker activities were not conducted in a sufficiently commercial manner to constitute a source of business income.
The appeals were allowed and the reassessments were referred back to the Minister.
