While almost everyone will admit that there are some laws—regardless of the country—that can really cause heads to spin, this one probably beats them all. A poker player in Spain has been slapped with a huge tax bill for losing at poker. Talk about adding insult to injury.
A few years ago, chess grandmaster Francisco Vallejo Pons was looking for a new pastime. Already an occasional poker player, Pons decided to participate in a few money games in 2011, spending, according to him, only a couple thousand euros, Chess.com first reported. His time at the felt ultimately didn’t go as planned, and he ultimate lost all the money he put in.
In 2016, Pons received a letter from Spain’s version of the Internal Revenue Service, informing him that he owed taxes on the money he had spent playing—and lost. The amount that he owed, according to the tax authority, was more than $615,000 (€500,000). It all came down to one, antiquated tax law.
The law stipulated that all online poker winnings were subject to a tax of 47%, and that losses could not be deducted. While Pons ultimately bottomed out and left with nothing, during the time he played he had put a significant amount of earnings in the win column, accumulating more than $1.2 million (€1 million). From this, the taxes were due.