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CPL Lawsuit

by Steve Gibson, May 23, 2001 6:28am PDT
Related Topics – lawsuit, CPL, Professional Gaming

ShackES and GamersLatino are reporting that some recent CPL winners are considering filing a lawsuit against CPL. Apparently they didnt realize the tax man gets a cut of their winnings and they want to sue CPL for not notifying them of common law.




Comments

19 Threads | 30 Comments


  • Ok,

    What I have to say is:

    Following Brazil's Law, CPL LA does NOT have the right to charge this 30% tax, since it is NOT A REGISTERED COMPANY(trademark). EVEN, if it WERE, this tax does NOT apply to this kind of Event, because it applies to competitions that depend on luck like lotteries and stuff.

    One more thing:

    I don't think the whole organization in guilty, but I am pretty sure that LEO DE BIASE(president) is the main problem there!

    Munoz, do you remember my e-mail sent to you a few days before the event start ? I warned you !


    Thanks for your attention,

    xR00Tx



  • Perhaps if you aren't aware of common tax laws, you aren't ready to enter high-stakes contests anyway.

    - Should the CPL have mentioned tax liabilities in the "fine print"?

    Probably. I don't recall ever seeing any contests that didn't. There is *always* lots of fine print. However, see next question.

    - Is the CPL *legally* obliged to mention the tax liabilities of the winners?

    I don't know. I guess we'll find out, won't we?

    - Does that absolve the winners from said tax liability?

    Absolutely not.

    Again, I reassert my opinion that if you aren't aware of basic tax laws such as gift and prize taxes, you may not be prepared (by your own ignorance, indifference, laziness, or otherwise fault) for entering high-stakes competition. There are certain responsibilities that come inherently - there's no such thing as a free lunch. Or any other applicable cliche you may have on your mind.

    - Holesinswiss