Windfalls are NOT taxable
https://globalnews.ca/news/9988499/winning-the-lottery-what-to-do/#:~:text=The%20good%20news%20is%20that,who%20benefit%20from%20ticket%20purchases.
Speaking of taxes, Canadians may have heard of U.S. lottery winners paying substantial amounts in tax on their winnings. The good news is that in Canada, winnings are not taxed as they are considered to be “windfalls” – unexpected payments that can also include gifts or inheritances. In part, this tax policy derives from the fact that lotteries in Canada are run by charities and governments who benefit from ticket purchases.
The Canada Revenue Agency (CRA) warns that while the winnings are not taxed, any income the winnings generate if invested in a non-registered investment or account — such as stocks or mutual funds that accrue interest or dividends – would be taxable.
“As your financial life gets more complicated, the tax aspects also get more complicated, so a good accountant will help you navigate those waters,” Hounjet said.
Winning a lottery can come with stress. Both Desbiens and Hounjet say Canadians should be sure to take care of their health both physically and mentally because it’s difficult to enjoy that wealth with loved ones if you fall ill.