Expired Contests

[Other] 2019/08/18 Sephora Beauty Insider Sweepstakes, pur or NPE

  • Last Updated:
  • Aug 15th, 2019 9:46 am
[OP]
Deal Addict
Aug 10, 2019
2727 posts
19528 upvotes

2019/08/18 Sephora Beauty Insider Sweepstakes, pur or NPE

You may receive up to 100 Sweepstakes entries during the Promotion Period, regardless of method of entry.

ONE (1) GRAND PRIZE: If winner is a resident of the United States, he/she will receive a $1,000,000 USD check.
If the winner is a resident of Canada, Sponsor will deduct 30% of the value of the prize and remit it to the IRS (the United States tax agency) as required by law. Winner will receive a U.S tax form 1042 from the
Sponsor/Administrator reflecting the total value of the prize, including the deducted amount and the withholding amount submitted to the IRS will be noted separately. Therefore, if winner is a resident of Canada, he/she will receive a $700,000 USD check.

https://www.beautyinsidersweeps.com/?ic ... age_080819

https://www.beautyinsidersweeps.com/pub ... 2ce9bc.pdf

I wish these American companies would learn how to properly run a contest in Canada!
12 replies
Deal Addict
User avatar
Jan 1, 2009
4082 posts
23286 upvotes
North York
Pardon wrote: You may receive up to 100 Sweepstakes entries during the Promotion Period, regardless of method of entry.

ONE (1) GRAND PRIZE: If winner is a resident of the United States, he/she will receive a $1,000,000 USD check.
If the winner is a resident of Canada, Sponsor will deduct 30% of the value of the prize and remit it to the IRS (the United States tax agency) as required by law. Winner will receive a U.S tax form 1042 from the
Sponsor/Administrator reflecting the total value of the prize, including the deducted amount and the withholding amount submitted to the IRS will be noted separately. Therefore, if winner is a resident of Canada, he/she will receive a $700,000 USD check.

https://www.beautyinsidersweeps.com/?ic ... age_080819

https://www.beautyinsidersweeps.com/pub ... 2ce9bc.pdf

I wish these American companies would learn how to properly run a contest in Canada!
When you win cash from a US contest, they have to deduct 30% for taxes from non-US residents; if you win anything other than cash, then you have a waiver form to sign and no taxes are due.
Member
Apr 3, 2010
472 posts
498 upvotes
There is a process for getting the withholding tax back. Some form you have to fill out, I believe, to send to the IRS. You're not liable for the tax as a Canadian citizen/resident.
Member
Jun 28, 2015
331 posts
269 upvotes
Toronto, ON
Hotdiggety wrote: There is a process for getting the withholding tax back. Some form you have to fill out, I believe, to send to the IRS. You're not liable for the tax as a Canadian citizen/resident.
My mother went through this for a casino win. It took months/years of back and forth and she only got like half of it back, even with a lawyer involved. Don't ever trust the US to follow even their own rules. Just look at Trump!
Deal Addict
User avatar
Jan 1, 2009
4082 posts
23286 upvotes
North York
mhall1 wrote: My mother went through this for a casino win. It took months/years of back and forth and she only got like half of it back, even with a lawyer involved. Don't ever trust the US to follow even their own rules. Just look at Trump!
Tax on casino winnings is different than winning money on a contest and you can file a 1042NR with the IRA to get it back if you had losses. You cannot get the 30% withholding back on cash contest. I work in an accounting firm and we confirmed this.
Member
Jun 28, 2015
331 posts
269 upvotes
Toronto, ON
Rosibal wrote: Tax on casino winnings is different than winning money on a contest and you can file a 1042NR with the IRA to get it back if you had losses. You cannot get the 30% withholding back on cash contest. I work in an accounting firm and we confirmed this.
I don't think I'd be accepting any mail from the IRA...
Deal Expert
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Jan 11, 2013
15270 posts
5043 upvotes
Toronto
Thanks kindly. Entered.
Wishing everyone a lucky 2021!

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