John Tavares is suing the Canada Revenue Agency

John Tavares is suing the Canada Revenue Agency

Toronto Maple Leafs captain John Tavares has become accustomed to intense confrontations throughout his hockey career, but the one he will engage in off the ice could have a significant impact on his future.

As The Globe and Mail reported on Wednesday, Number 91 last week appealed the Tax Court of Canada's ruling on the payment it must make to the Internal Revenue Service for income from Canada. It claims that the attacker must pay taxes equal to 38% (plus interest) of the value of his $15.3 million signing bonus, which he accepted under the terms of his contract dated July 1, 2018; Instead, citing a Canada-US tax treaty, the player assumes the payment should be around 15%.

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Tavares signed a seven-year, $77 million contract with the Leafs after leaving the New York Islanders, leaving more than $8 million at stake in the dispute. According to the player, the bonus was deposited in July 2018 into a bank account he had in New York, adding that he only spent 45 days in Canada from September to December that year.

“The bonus was a form of recognition for Tavares, a uniquely talented free agent who signed a seven-year contract with the Maple Leafs. […] “It was not a question of a salary, any benefits or other remuneration for his work,” said the appeal, as the specialist media specified.

Tax rate… impressive

He added that the outcome of the conflict could influence No. 91 — and other National League players — when it comes time to pick a team on the free agent market. The veteran will be completely free at the end of the next campaign unless he renews his consent. If he takes action against the tax authorities, he risks being tempted, like other athletes, to look elsewhere. In 2016, the federal government increased the current top tax rate from 29% to 33%.

This season, the 33-year-old Ontario native has 37 points in 48 games.