I, as a hobby and sort of a second income, bet in sports pretty regularly. Because I have a system, I bet in a disciplined way and follow lots of sports, I make good amount of profit from betting. Obviously, sometimes I lose big, sometimes I win big. Overall, I always keep track of my profit situation and my profit this year is pretty serious compare to my salary(About half of my salary). I have been doing this for years, but this last year has been the most profitable, by far.
So, the question is, what is the tax situation here? A few years ago, I spoke to an accountant and asked this question, and she said that because gambling winnings are not taxed in SA(unless you're a professional gambler) and also it's not like I keep winning, I lose some, and win some. She said it's not necessary to declare that to SARS when it's e-filing time. That year, I didn't declare anything about my sports betting winnings and nothing happened.
Last year, I used Taxtim for e-filing and they actually suggested declaring them, and I did. No problem at all again.
The reason why I'm questioning this now is that the amount this time is much much higher. If I declare my sports betting winnings, SARS might ask for documents and that will be a hell to go through as I use a few different betting websites and there are so many deposits/withdrawals. The questions here are:
So, long story short, is it necessary mention gambling winnings as "other income" during e-filing?
So, the question is, what is the tax situation here? A few years ago, I spoke to an accountant and asked this question, and she said that because gambling winnings are not taxed in SA(unless you're a professional gambler) and also it's not like I keep winning, I lose some, and win some. She said it's not necessary to declare that to SARS when it's e-filing time. That year, I didn't declare anything about my sports betting winnings and nothing happened.
Last year, I used Taxtim for e-filing and they actually suggested declaring them, and I did. No problem at all again.
The reason why I'm questioning this now is that the amount this time is much much higher. If I declare my sports betting winnings, SARS might ask for documents and that will be a hell to go through as I use a few different betting websites and there are so many deposits/withdrawals. The questions here are:
- Would SARS come after me if I don't mention my gambling winnings in e-filing?
- Would they ask me for more documents if I declare my gambling winnings in e-filing?
- If I need to declare, do I declare the amount of profit I made or the total amount of withdrawals? (It will be a big difference in number)
So, long story short, is it necessary mention gambling winnings as "other income" during e-filing?