The Supreme Court of Tokyo has ruled in favor of a man who lost money betting online and wanted to treat his losses as tax-deductible. In handing down the decision, the high court rejected an appeal by the state.
The latest decision is in accordance with a 2015 ruling that found costs for unsuccessful horserace wagers can be tax-deductible if the tickets are “bought on a regular basis for the purpose of making profits,” the Japan Times reports.
Following that decision, the National Tax Agency decreed that bettors must use automatic ticket purchase software as a condition for unsuccessful horserace bets to be treated as tax-deductible.
But in the latest ruling, the top court accepted the claim of the plaintiff even though he did not use the required software.
“Given the period, number and frequency of purchases of betting tickets, the series of actions by the man can be viewed as continuous,” the court said.
The man reportedly bought betting slips worth 7.27 billion yen (US$64.2 million) from 2005 to 2010 online for a net gain of around 570 million yen. At first authorities did not recognize his losses as expenses and levied 190 million yen (US$1.67 million) in additional taxes. At that point the man, a Hokkaido resident, filed suit in Tokyo District Court, which rejected his claim. That decision was later overturned and the case went to the Supreme Court.
