{"id":9457,"date":"2024-02-08T05:48:53","date_gmt":"2024-02-08T10:48:53","guid":{"rendered":"https:\/\/www.betting.ca\/news\/?p=9457"},"modified":"2024-02-08T05:49:58","modified_gmt":"2024-02-08T10:49:58","slug":"toronto-maple-leafs-captain-john-tavares-allegedly-owes-8-million-in-taxes-to-cra","status":"publish","type":"post","link":"https:\/\/www.betting.ca\/news\/toronto-maple-leafs-captain-john-tavares-allegedly-owes-8-million-in-taxes-to-cra","title":{"rendered":"Leafs Capt. John Tavares Allegedly Owes $8m in Taxes to CRA"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"380\" height=\"250\" src=\"http:\/\/www.betting.ca\/news\/wp-content\/uploads\/sites\/2\/2024\/02\/john-tavares.jpg\" alt=\"John Tavares\" class=\"wp-image-9458\" style=\"width:300px\" title=\"Toronto Maple Leafs Captain John Tavares Allegedly Owes $8m in Taxes to CRA\"\/><\/figure>\n<\/div>\n\n\n<p><strong>Summary:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The amount stems from a $15.3 million signing bonus Tavares received upon joining the Leafs in 2018<\/li>\n\n\n\n<li>The Leafs captain has taken the case to court, claiming the bonus should not be considered a salary<\/li>\n\n\n\n<li>Tavares may not re-sign with the Leafs if the court rules against him<\/li>\n<\/ul>\n\n\n\n<p><strong>John Tavares<\/strong>\u2019 future with the <a href=\"https:\/\/www.betting.ca\/news\/toronto-maple-leafs-keep-faith-with-head-coach-sheldon-keefe\">Toronto Maple Leafs<\/a> now hangs in the balance as he is currently involved in a tax dispute with Canadian authorities. <\/p>\n\n\n\n<p>The Leafs captain recently filed an appeal in the Tax Court of Canada after he was <strong>ordered by the Canada Revenue Agency (CRA) to pay $8 million in taxes<\/strong> arising from a US$15.3 million signing bonus he received from the Leafs when he joined the team in 2018.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" class=\"wp-block-heading\" id=\"15-3m-signing-bonus-should-not-be-considered-salary\"><strong>$15.3M Signing Bonus Should Not be Considered Salary<\/strong><\/h2>\n\n\n\n<p>Tavares is seeking to have the CRA\u2019s reassessment of his 2018 tax return annulled, arguing that the agency incorrectly calculated his taxes. Tavares, an <a href=\"https:\/\/www.betting.ca\/hockey\/nhl\">NHL<\/a> star player, signed a seven-year $77 million contract with the Leafs in July 2018 after becoming an unrestricted free agent upon the end of his contract with the New York Islanders.\u00a0<\/p>\n\n\n\n<p>The Leafs deal came with a US$15.3 million signing bonus which \u201c<em>was integral<\/em>\u201d in Tavares\u2019 decision to join the team, the appeal says.\u00a0<\/p>\n\n\n\n<p>The CRA claims that the Leafs captain\u2019s <strong>income for 2018 was $17.8 million higher than reported<\/strong>, making him liable to an additional $6.8 million in taxes plus $1.2 million in interest.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Toronto Maple Leafs&#039; captain John Tavares takes CRA to court over $8M tax dispute\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/oYb8ODK0518?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>In his appeal, Tavares argues that the signing bonus he received in 2018 constituted an \u201c<em>inducement<\/em>\u201d to convince him to sign with the Leafs and should not be treated as salary or wages. The 33-year-old Mississauga, Ontario native argues that he would still be entitled to the bonus in the event of a trade or an injury.\u00a0<\/p>\n\n\n\n<p>The <strong>signing bonus must therefore be taxed at only 15%<\/strong>, as part of a Canada-US taxation treaty, and <strong>not 38% as imposed by the CRA<\/strong>, the appeal says. The agency has yet to file a response to the appeal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" class=\"wp-block-heading\" id=\"future-impacts-of-tavares-tax-dispute\"><strong>Future Impacts of Tavares\u2019 Tax Dispute<\/strong><\/h2>\n\n\n\n<p>Tavares\u2019 case could set a precedent for how Canada\u2019s tax authorities deal with expensive players. It could also impact future decisions by professional sports franchises based in the country, particularly in terms of offering huge <a href=\"https:\/\/www.betting.ca\/bonuses\">signing bonuses<\/a> to top players.<\/p>\n\n\n\n<p>Should Tavares lose the legal battle, it <strong>might deter him from signing a new contract with the Leafs when his existing contract expires in 2025<\/strong>. His $77 million payout is mostly structured as a bonus. His annual salary only accounts for less than $1 million.<\/p>\n","protected":false},"excerpt":{"rendered":"Summary: John Tavares\u2019 future with the Toronto Maple Leafs now hangs in the balance as he is currently involved in a tax dispute with Canadian authorities. The Leafs captain recently filed an appeal in the Tax Court of Canada after he was ordered by the Canada Revenue Agency (CRA) to pay $8 million in taxes [&hellip;]","protected":false},"author":2,"featured_media":9458,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12,5,16,6],"tags":[],"class_list":["post-9457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hockey","category-legislation","category-nhl","category-sports"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Leafs Capt. 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John Tavares Allegedly Owes $8m in Taxes to CRA\" \/>\n<meta property=\"og:description\" content=\"John Tavares\u2019 future with the Toronto Maple Leafs now hangs in the balance as he is currently involved in a tax dispute with Canadian authorities.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.betting.ca\/news\/toronto-maple-leafs-captain-john-tavares-allegedly-owes-8-million-in-taxes-to-cra\" \/>\n<meta property=\"og:site_name\" content=\"Betting.ca News\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-08T10:48:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-08T10:49:58+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.betting.ca\/news\/wp-content\/uploads\/sites\/2\/2024\/02\/john-tavares.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"380\" \/>\n\t<meta property=\"og:image:height\" content=\"250\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Doug Hirdle\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@DHirdle\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Doug Hirdle\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.betting.ca\\\/news\\\/toronto-maple-leafs-captain-john-tavares-allegedly-owes-8-million-in-taxes-to-cra#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.betting.ca\\\/news\\\/toronto-maple-leafs-captain-john-tavares-allegedly-owes-8-million-in-taxes-to-cra\"},\"author\":{\"name\":\"Doug Hirdle\",\"@id\":\"https:\\\/\\\/www.betting.ca\\\/news\\\/#\\\/schema\\\/person\\\/671c752adfb5662da980fc82ba1bfc19\"},\"headline\":\"Leafs Capt. 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