You sure about that? I know they aren't taxed when you buy them because you'll instead be taxed when redeeming the value, but you were still taxed on the income with which you bought the card. I'm pretty sure the winner will have to pay tax on the full value of the prize (~13 grand), that's why it's listed in the contest rules.
Technically, Apple is taxed on it as income and it is transferred to the winner in the form of a product. You can receive up to a certain amount (at least in the US) as a gift without having to report it as income. However, because this gift is neither transferable or directly redeemable for cash, I'm not sure how the rules vary here.
In case someone in Germany wins the prize, you don't have to pay any taxes. Doesn't matter whether you win 100M in the lottery or a gift card from Apple, all profits from games of chance are completely taxfree.
So if a US citizen wins the contest what would the tax rate be?
They are excluding the Province of Quebec (in which I live), BUT WHY!? The whole world can participate but not us! srsly...
They are excluding the Province of Quebec (in which I live), BUT WHY!? The whole world can participate but not us! srsly...
Would be funny if it wasn't true.
err.. what the heck would you do with a $10,000 iTunes Gift card!??!
have we sorted this out yet?? is it a random entry that wins or the one billion![]()
All downloads between the time the competition opened (today) and the time the 1,000,000,000th app is download are entered into a "lucky dip". A winner is chosen from that lucky dip.
Sweepstakes. Sponsor is the sole judging organization whose decisions as to the operation of the Sweepstakes and the selection of the potential winner are final and binding in all matters related to the Promotion. The prize will be awarded for the entry (either through an app download or through the non-purchase online entry) sent immediately following the download of the 999,999,999th app. The potential winner will be determined by the order of the entries received. In the event that more than one entrant would be a winner based on the simultaneous timing of entries, one entrant will be randomly selected from those entrants as the winner. Each entrant’s chances of winning are dependent upon the number of eligible entries received.
Yet, although many people continue to repeat this because it seems like it would make sense, that's not what the rules say.
Edit: here's the direct quote from http://www.apple.com/itunes/billion-app-countdown/rules.html
They are excluding the Province of Quebec (in which I live), BUT WHY!? The whole world can participate but not us! srsly...
I wonder if those of us without iPhones/iPod touches are allowed to download and/or purchase apps, even though we have no way of using them, just to participate in this promotion.
In any case, I don't think I'll bother, as I fit into the above category, and the chances of winning the iPod touch so I can actually use the app are extremely slim.