Why would people even avoid paying taxes anyway? If you made good money, just pay them their cut and get on with it. I know it sucks to pay the government but it is still better than going to jail. Instead of worrying about it everyday and having bad dreams at about it night, paying them makes a lot more sense. If you decided not to pay however, you should have a very good plan. It must be very good because the IRS is better than you think so I've heard.
Um, I do not know. Maybe they do not want to pay high taxes or think that all of the money is their money, which does not come from their income. But I agree with you that no matter what it is, we should follow the government rule, and if we need to pay taxes, we should pay it. Maybe we can ask the government to reduce the tax amount because that does not come from our sources of income.
I'm saying regards losing gamblers specifically. Lack of knowledge can lead some people to pay taxes even if they shouldn't, that is the case of being in loss and charged by the government to pay gambling taxes. If it happens the person can appeal and show his previous losses. Adding the won prize to the previous losses it's possible to prove the individual lost more than won, so it's not needed to pay anything.
And I really doubt there is any country which enforces a regulation where losing gamblers must pay something.
But I do not think that they can win from the government if they appeal and show the losses as the government can still get the money. But that will be different if we won the prizes and have big money from gambling. But it seems not fair for the losing gamblers to pay the taxes because they already lose in gambling and pay the taxes.