Maple Leafs Captain John Tavares Involved in an $8M Legal Battle: Future in Toronto Hangs in the Balance
Toronto Maple Leafs captain John Tavares has become implicated in an $8 million legal dispute that could wipe away a large chunk of his fortune.
Tavares Fighting Canada's Tax Agency Over $8 Million
During the summer of 2018, the Toronto Maple Leafs landed the biggest free agent on the market when they signed their captain John Tavares to a 7-year $77 million deal which came with the majority of the deal paid in signing bonuses.
Now, six years later, Tavares is fighting Canada's tax agency over the first signing bonus of his contract, worth over $15 million USD.
"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
The matter has yet to go to court but if it does, it will be a landmark case for athletes all over Canada as they may be forced to pay millions more in taxes than if they were to sign for an American franchise.
As read on The National Post - Tavares fighting Canada's tax agency over $8M it claims he owes
| POLL | ||
Should Tavares be forced to pay these taxes? | ||
| Yes | 504 | 40.4 % |
| No | 742 | 59.6 % |
| List of polls | ||
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