Maple Leafs John Tavares is going to court: Major development emerges
Photo credit: Hockeypatrol Edit
John Tavares has long been involved in an ongoing issue with the Canadian Revenue Agency, and now there's been a huge development in the situation.
For years now, it has been believed by many fans of the NHL that states with no taxes have a major advantage over those that do, and given the rates north of the border in Canada, those teams find themselves at a major disadvantage. One player that has had major issues with the Canadian Revenue Agency over his income is former Maple Leafs captain John Tavares, who has been in a dispute with the CRA, claiming that they taxed him incorrectly back in 2018 when he first signed with the Toronto Maple Leafs after spending nine years in the USA with the New York Islanders.
When signing with Toronto, Tavares landed a major bonus, to which the CRA taxed as regular income, but due to the fact that it was a bonus, Tavares believed he should be taxed at a much lower rate, with Tavares believing the 15% rate should be used on his $15 million signing bonus, rather than over 50% like it has been. According to Allan Walsh, famed NHL agent, Tavares may have got some bad advice before making this move to dispute the move, as the language in the deal may decide whether or not he is successful.
«It's a very good example of why players need to surround themselves with the most competent representation,» Walsh adds that the specific language used in the deal might be what makes the court rule in either Tavares or the CRA's favour.
«The CRA has taken the position that since the signing bonus has conditions on it, and if a player does certain things, that's no longer an inducement,» Walsh said. «By virtue of the language of the deal, it's been converted to regular income, and can be taxed at a regular income tax rate.»
«The CRA has taken the position that since the signing bonus has conditions on it, and if a player does certain things, that's no longer an inducement,» Walsh said. «By virtue of the language of the deal, it's been converted to regular income, and can be taxed at a regular income tax rate.»
Ultimately, if the dispute isn't successful, this could further hamper the way that Canadian teams attack free agency in the NHL, but if he's successful, it could go a long way in helping level the playing field.
| POLL | ||
5 SEPTEMBRE | 294 ANSWERS Maple Leafs John Tavares is going to court: Major development emerges Will the Maple Leafs captain win his lawsuit against the CRA? | ||
| Yes | 161 | 54.8 % |
| No | 133 | 45.2 % |
| List of polls | ||
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