John Tavares Facing Major Legal Action Over Nearly $10 Million in Unpaid Taxes
The Toronto Maple Leafs captain John Tavares could lose nearly $10 million in a legal dispute with Canada's tax agency.
Tavares Fighting Canada's Tax Agency Over $8 Million
Just this morning, Glen McGregor of The National Post dropped some major news regarding Toronto Maple Leafs captain John Tavares. McGregor revealed that Tavares is in a dispute with the CRA that could see him lose over $8 million from his signing bonus from 2018.
"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.
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." - Glen McGregor of The National Post
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." - Glen McGregor of The National Post
If this case were to go to court and Tavares were to lose, it would set a precedent making it less desirable to play for Canadian franchises as they could be taxed more on signing bonuses like Tavares was.
Hopefully, for the players and teams all over Canada, things go in favor of Tavares. We will provide updates as this story develops.
As read on The National Post - Tavares fighting Canada's tax agency over $8M it claims he owes
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