Taxes - NHL Players

[MillerTime GFG]

Originally Posted by heep223

....is it news to you and others are in the highest tax brackets and pay very high taxes?

No, not really. Just can't actually fathom being taxed that much, let alone ever making that much.

[FanIn80]

I don't care how much money someone makes. Losing 49% of your annual salary to income tax is a friggin' travesty.

[PeteMoss]

Originally Posted by jar_e

This is an incredibly dumb question probably...but how does this work when people go on work trips in the "normal" world? Like when I have a buddy travel to Texas for work from Calgary, he's not making money (or paying taxes) in Texas. Wouldn't the same apply to professional sports?

There are rules in place to determine if you are a resident in that country. When you are going down for a business trip, you are still employed in Canada and being paid in Canada. Going down for a 2 week trip isn't going to cause you pay US taxes. If you were down there living for six months (or longer) and working for a company down there, you'd have to pay local taxes.

[Keselke]

It's a wonder these guys can even survive

[PeteMoss]

Originally Posted by mrkajz44

The article is misleading in my opinion. Basically, some jurisdictions have have high tax rates (Quebec, California) while others have lower tax rates (Texas, Tennessee). The article seems to gloss over the fact that California is the worst - they always seem to want to slam Canada, when California and New York are worse off than Montreal.

And there is only so much tax planning you can do to lower your taxes. After that, its just evasion or fraud. Both of which anyone would want to avoid at all costs.

Also need to consider other taxes. Texas doesn't have state income tax, but they have high property tax rates (and relatively high sales tax rates for the US). It is still cheaper than other states though.. similar deal to Alberta - Oil money.
http://www.nytimes.com/2013/05/24/us...pagewanted=all

[heep223]

Originally Posted by FanIn80

I don't care how much money someone makes. Losing 49% of your annual salary to income tax is a friggin' travesty.

At least we have universal health care.

[nickerjones]

Originally Posted by MrMastodonFarm

Same thing with Canadians living in the US, no?

Nope, US to my knowledge is the only country that you have file an income tax return even when all your money was made as a resident of another country.
My wife was a perm resident of the US , as a Canadian, and never had to file taxes with Canada until she moved back to Canada.

[albertGQ]

Dont forget agent fees (~3%) as well as escrow.

Some may take home 40% of what their salary would be.

[mrkajz44]

Isn't the escrow account just used to make sure the players don't take home too much when projecting league revenues? I thought they got most of that back at the end of the season.

[GGG]

Originally Posted by FanIn80

I don't care how much money someone makes. Losing 49% of your annual salary to income tax is a friggin' travesty.

It barely covers the arena subsidies that are handed out to the teams.

[Robbob]

I wonder if there is anything in the cba against a player incorporating or becoming a numbered company.

The flames are proud to announce the signing of sean monahan inc and AB0964125 ltd.

[Resolute 14]

Originally Posted by albertGQ

Dont forget agent fees (~3%) as well as escrow.

Some may take home 40% of what their salary would be.

Originally Posted by mrkajz44

Isn't the escrow account just used to make sure the players don't take home too much when projecting league revenues? I thought they got most of that back at the end of the season.

It has varied. There have been years that the players have had to eat huge escrow losses - like 7-10%. This is because the escrow is based around the salary midpoint, which is itself based on estimated revenue for the year; if everyone is spending over the midpoint and revenues can't compensate, they lose a lot.

I would imagine agent fees would be tax deductible.

[T@T]

Not sure why people are amazed at this, everyone who makes this kind of dough pays big time taxes, from sports stars to movie stars they all pay their big share.

Boxer Lennox Lewis shunned Canada and moved to England(his birth place) to save about 8% on his taxes. Might not seem like a lot but one year it was about a $2 million saving.

[calf]

Originally Posted by Robbob

I wonder if there is anything in the cba against a player incorporating or becoming a numbered company.

The flames are proud to announce the signing of sean monahan inc and AB0964125 ltd.

If they did this they would be a Personal Services Business, and taxed at the personal level anyways.

[Loyal and True]

You can see why governments have been willing to assist (to some degree) with buildings or infrastructure if it keeps a team and the players' tax revenue in your jurisdiction

[powderjunkie]

As far as Montreal is concerned, things can sort of balance out based on sponsorship potential. The Titan's backup right guard probably has more other source earning potential than Shea Weber

[I-Hate-Hulse]

I've seen some NHL player returns in the past - one interesting fact - they have to file a return in every province and state they've played games in.

Same thing with musicians on tour.

A small pittance to pay for the millions they take in.

[Superfraggle]

Originally Posted by nickerjones

Nope, US to my knowledge is the only country that you have file an income tax return even when all your money was made as a resident of another country.
My wife was a perm resident of the US , as a Canadian, and never had to file taxes with Canada until she moved back to Canada.

Depends on your residency status, not where you made your money. A Canadian player who plays in the US but hasn't severed his residency ties to Canada would still have to file in both places. As has already been mentioned, though, double taxation is dealt with through foreign tax credits.