Tax Dispute On $15.3M Bonus May Impact Tavares's Toronto Future And Canadian Teams Signing Power
A recent dispute with the Canadian government over a bonus paid to John Tavares could greatly impact his willingness to re-sign. Tavares appeal ruling on the matter could determine his future in Toronto.
Tavares Missing Bonus Money Could Impact His Future In Toronto
John Tavares has been with the Toronto Maple Leafs since 2018. When Tavares signed with the Maple Leafs he received a 15.3 million dollar signing bonus. This bonus has become a major issue for Tavares.
According to a new report Tavares the CRA incorrectly tallied up the taxes he owes on that money leading to missing funds in his account. Tavares claims he should only owe around 15% in taxes.
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Tavares argues the bonus should have been taxed at only 15 per cent under a provision of a Canada-U.S. taxation treaty, which sets the lower tax rate for «inducements,» such as signing bonuses, paid to athletes, artists, actors and musicians.
However, to this point, the Canadian government has not agreed. Instead, the government believes he owes 38% of that bonus in taxes.
The CRA assessed that he must pay a rate of over 38-per-cent on the bonus, plus interest, but it has not yet filed a response to the appeal. None of the allegations have been proven in court.
This dispute if it does not end in Tavares's favor could bring an end to his Maple Leafs career.
Will Taxes Be The Reason Tavares Reign In Toronto Comes To An End?
John Tavares has been beloved by Toronto Maple Leafs fans since the day he arrived. Tavares has embodied the type of player the Maple Leafs look for and become captain along the way. However, this tax issue poses a major threat to his future.
As we have seen in many other cases already taxes can be a major factor in the decision-making process for players. Many have went to places like Florida or Texas to avoid state income tax.
If the Canadian government denies Tavares's appeal look out for him to begin considering free agency more seriously.
| POLL | ||
7 FEVRIER | 401 ANSWERS Tax Dispute On $15.3M Bonus May Impact Tavares's Toronto Future And Canadian Teams Signing Power Will John Tavares re-sign in Toronto? | ||
| Yes | 178 | 44.4 % |
| No | 223 | 55.6 % |
| LIST OF POLLS | ||
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