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John Tavares' time in Toronto may be over due to legal dispute: he may have no choice

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Aaron Itovitch
September 9, 2024  (8:18)
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Toronto Maple Leafs forward John Tavares
Photo credit: Markerzone

John Tavares has been involved in a legal dispute with the Canada Revenue Agency for a while, over a $15.25 million signing bonus from the Toronto Maple Leafs.

The now-former captain of the Toronto Maple Leafs (replaced by Auston Matthews this year) has been in a fight over tax code, with the CRA (Canada Revenue Agency) suing him over his 2018 signing bonus of $15.25 million.

John Tavares' defense is that he was still an American citizen when he signed his $77 million deal with the Leafs in 2018, thus being subject to American tax rules on the signing bonus, rather than getting taxed at a rate of approximately 46%.

Per the Toronto Maple Leafs news source Editor in Leaf, the likelihood of John Tavares being found guilty is high, and thus there will be pressure for him to move to the United States for his next contract, likely in a low-tax state such as Tennessee or Florida.

Via Editor in Leaf:

If the next ruling comes down against him, which it most certainly will, Tavares could be discouraged to re-sign in Toronto. He may opt to sign with an American team, preferably one in Florida, where the tax rate is much lower [...]

If and when the hammer comes down on Tavares, Canadian NHL teams' lawyers will need to work over time in order to ensure that future contracts eliminate the possibility of issues such as the one Tavares currently faces.

You can read the full article from Editor in Leaf on Tavares' legal battle HERE


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John Tavares' time in Toronto may be over due to legal dispute: he may have no choice

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