There's been a major update in the Toronto Maple Leafs' captain John Tavares and his $15M dollar legal battle against the Canadian government.
The Canada Revenue Agency is disputing Tavares' claim that he made back in January concerning a $15.25 million USD bonus he received from the Leafs in 2018.
The captain stated that his bonus was taxed as a salary revenu, but should've been considered like any bonuses paid to athletes, which comes with a lower rate of 15%.
If he loses, Tavares could end up paying an $8 million difference to the Canadian government.
In a new development, we learned that the CRA denies it was a signing bonus, and wants Tavares to pay taxes for his whole income:
"The CRA «denies that any amount referred to as a 'signing bonus' was a signing bonus or an inducement payment,» the government said in a response to Tavares' tax appeal, filed last week in the Tax Court of Canada.
It adds, «the amount of USD $70,890,000 was not paid to [Tavares] as consideration for entering into, or as an inducement to sign, the Contract.»
«The 2018 Amount was salary, wages or other remuneration received by [Tavares] in the 2018 taxation year when he was a resident of Canada,» the response to the appeal says. «Accordingly, the entire 2018 Amount is to be included in [his] income.»"
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Even if Tavares earned around $95,141,463 million in his career, it remains an $8 million difference, which is important enough to fight for it.
Do you think John Tavares can still win his 15M dollar legal battle?
Do you think John Tavares can still win his 15M dollar legal battle?
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