John Tavares' Future With the Leafs Takes an Unexpected Twist After Off-Ice Factor Emerges
Photo credit: Timothy T. Ludwig-Imagn Images
John Tavares's future with the Maple Leafs may be in a bit of jeopardy if he doesn't end up getting things sorted out regarding his taxes and the CRA situation.
While there is a lot of discussion surround whether or not John Tavares is going to re-sign with the Maple Leafs, with the length and price heavily debated. Though there are questions about whether or not he should re-sign, he's still currently embroiled with the CRA with regards to his tax reassessment.
Under the microscope for his signing bonus when he initially arrived, he's been fighting the agency in court, and with a new report showing that the CRA needs to disclose some very important information; it could end very well in Tavares' favor.
What John Tavares' CRA battle means for future free agents
It's quite a complex situation when you really delve into it, and The Hockey News' David Alter did his best to break things down and explain what might be next for not only Tavares but future players as well:
This has been going on since 2024. This is a response hearing to the CRA's response because Tavares is appealing his reassessment. Basically the Tavares camp got a big win in compelling the CRA to answer how the T980 was prepared.
Basically a judge ordered them to answer those previously unanswered questions, and there's an indefinite amount of time for them to go back and answer. They will eventually need a trial but there is no set date.
It's good because they need to answer about their process. It's not solved but in a holding pattern right now.
We've talked a lot about state taxes and such between both countries, and the final outcome is going to be a big decider for Canadian teams and recruiting, and not having to worry about players fearful of the CRA and if they will go after them if they sign bonuses. - David Alter
Basically a judge ordered them to answer those previously unanswered questions, and there's an indefinite amount of time for them to go back and answer. They will eventually need a trial but there is no set date.
It's good because they need to answer about their process. It's not solved but in a holding pattern right now.
We've talked a lot about state taxes and such between both countries, and the final outcome is going to be a big decider for Canadian teams and recruiting, and not having to worry about players fearful of the CRA and if they will go after them if they sign bonuses. - David Alter
What this means going forward for the Canadian market
It can mean only good things going forward, considering that when it boils down to the basics; it's a business and it's about making money.
If players are concerned that they are going to be hounded left and right by a government organization for something really out of their hands (what, you're gonna ask them not to sign a bonus?) they are going to back away.
Not everyone is Chris Tanev and studies finance in their spare time. Players are told they are going to be given a certain salary amount, with whatever bonuses attached, and that's their value.
To not need to worry about losing millions of dollars to extra taxes on top of the ones they are already paying is very appealing, not only to the big named markets that can sign huge names but smaller ones too.
Look at Montreal or Ottawa; they would love to be able to sign specific free agents because they fit into their system or they would be a great addition to the community, but a high tax rate and the looming CRA will make them think twice, even if they want to sign.
This doesn't mean that everyone is going to start jumping ship to Canada as there are still obviously very appealing markets in Florida, Texas, and Vegas.
But if Tavares ends up being victorious in his court case, expect the rest of the league to open their minds up a bit more to coming up north.
| POLL | ||
JUIN 17 | 647 ANSWERS John Tavares' Future With the Leafs Takes an Unexpected Twist After Off-Ice Factor Emerges Will more free agents sign in Toronto thanks to John Tavares' CRA update? | ||
| Yes | 491 | 75.9 % |
| No | 156 | 24.1 % |
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