Just got a mailed reminder of a PCA raffle (too late as it happens — but that is beside the point) and it stirred me to think of what would happen if a Canadian won.
What are the US tax implications of winning the raffle? I presume the cash they offer with the car is to offset the US income tax owed? Is that something that is recoverable if you are Canadian? I presume also to import the car and license it in Ontario would require payment of HST calculated on some amount ..the value of the car in the US translated to CDN based on some rate of exchange? I presume you would have to pay that out of pocket? A safety and emissions certificate required as well I would guess?
I know that Canadian PCA Members have won cars in these raffles in the past and I do not believe there are any issues with regard to receiving the prize. I assume that the delivery was arranged through a Canadian Dealer local to the winner. It is not like PCA actually takes delivery of any vehicles prior to the raffle ending. They just use the money accumulated to pay for the number of prizes allotted. With current exchange rates it may be even less costly for them to purchase Canadian vehicles. I think the MSRP of a 911 Carrera-T in the US is $102,100. In Canada it is $116,500 Cdn. !!
Actually, a local UCR member won in the last raffle and the announcement was held up (by PCA) until we could do the reveal at our monthly social. This was reported by Kathleen in a recent Provinz. I don’t know whether the winner took the car or the cash option.
No, the vehicle is NOT delivered in Canada. It is delivered in the US via a dealer and must be imported into Canada, as for any other vehicle. Another UCR member that actually won a 911GTS was Colin Black but he lived in Buffalo and so delivery via the Buffalo dealer was not an issue.
Interesting. For the latest raffle, the cash option would be the better option, although I am not clear if you still get the $25k cash as well as the $85k in lieu of the car. $110k US would put you at $140k Cdn. If not, and you take the car, the $25kUS should be more than enough to pay for import to Canada.
The UCR winner of the 2017 PCA Spring Raffle ended-up taking the cash in the end because it was not so easy to take the car+money and either import it or sell it in the US. Worked out to a much lower net figure than the numbers mentioned in this thread due to US withholding and a whole bunch of issues related to personal tax implications. The PCA Raffle is intended for the Americans and the state laws of Maryland for lotteries come into play, first and foremost for non-residents. Residents of other US states may have different rules applicable. UCR’s Board should lobby PCA to set-up a Canadian based lottery. Everyone in UCR and in Canada should write to email@example.com to get this process in motion and also to the Executive Council (login to PCA to access) and directly to the Executive Director firstname.lastname@example.org to lobby for a Canadian lottery for Canadians?
Happy New Year ! This is Kathleen Wong, President of PCA-Upper Canada Region.
An UCR member sent an email to Vu Nguyen, PCA National Office and I to enquire about this. Please see Vu’s reply below:
” I totally agree that ideally we should have all things equal for PCA members, but unfortunately the raffle rules of Canada don¹t allow PCA to offer as we hope. Even the state of Washington doesn¹t allow PCA to offer the raffle in the same manner as other states.
As much as we¹d like to make it equal, raffle laws in the jurisdictions dictate what we can offer.