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Hello, thank you for the question.
That does sound fishy to me. What more can you tell me about the phone call?
Should I assume that you don't recall entering any kind of Prize Masters lottery or draw?
I've done a bit of research online, and it seems clear that this Prize Masters call is a scam. There are numerous very similar scams I've seen reported, here's one:
And yes, you're correct. In Canada, a lottery payout is considered a windfall and there should be no "tax" withheld, nor should there be any customs charges that have to be paid directly to them before they pay you. In the event that there is some of government imposes fee depending on where you live, that problem is solved by paying the win to a lawyer to hold in escrow, who then pays the fees out of the money and gives the balance to the winner. There's no legitimate reason to have to send money to a lottery in order to collect your win.
Good job in listening to your gut. The only way that these scam attempts will ever end is if nobody falls for it, and given human nature I doubt that will ever happen.
Anything else about this you'd like to discuss? I'll await your question or comment. If I've answered you fully then I'd appreciate a positive service rating please.
I hope you didn't send them any money yet. Any updates?