Interesting story out of Australia:  Poker Joe Trumps Tax Office:

The cards fell poker champion Joe Hachem’s way a second time yesterday after the Australian Taxation Office ruled he would not have to pay tax on his $10 million win. The ATO decided the Melbourne man was still officially working as a mortgage broker when he won the grand prize in July’s No Limit Texas Hold ‘Em World Championship in Las Vegas. This decision means his bonanza was classified as income derived from a hobby, not from business, saving the poker king from paying about $3.5 million in tax. The American tax office has already taken 30%, or $3 million, of the 39-year-old’s winnings, and if the Australian tax man took his slice it would have left him with $3.5 million.

Mr Hachem’s tax counsel, Peter Donovan, said yesterday it was unclear if the poker ace would have to pay tax on future winnings. "The distinction between the conduct of a business and the pursuit of a hobby is often a difficult distinction to draw," he said.