In a court ruling, horseman / owner Joe Hudon has won a case regarding GST.
In his case, Hudon stated that purse money received by trainers and drivers from pari-mutuel contests should be GST-exempt, as they were part of driver / trainer income.
Hudon contended that the purse winnings were not subject to GST taxation, as the monies were received as prizes given to a competitor, and thus not subject to GST.
Within a 20-page ruling from the Tax Court of Canada, the court ruled in Point 103 that:
At the end of the day, the Court is satisfied that the Appellant has rebutted the necessary presumptions contained in the Reply and has satisfied the Court on the balance of probabilities that it is entitled to the exemption provided under subsection 188(2) of the Act.
To view a complete copy of the 20-page ruling, click here.