Interesting article on John Tavares tax appeal to CRA in the National Post and Toronto Star and Toronto Sun. If he loses this appeal it would be a good reason for any future superstars not wanting to play in Canada.
Remind me again what you’re doing around these neck of the woods…
I hope he has to pay up. Rich folks should pay taxes just like everyone else.
I hope he has to pay tax when and where it is due. If that money was paid while in the US and not a resident of Canada which is my guess (paid july 1, 2018, so less than 180 days in Canada that year), then Canada can eff off.
Sucks that this gets dragged out in the open. I believe in progressive tax systems, but if Canada doesn't have a right to it, then TFB.
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"Fun must be always!" - Tomas Hertl
I hope he has to pay up. Rich folks should pay taxes just like everyone else.
North American pro athletes are one of the few wealthy groups of people who pay a fair share of their taxes. They have some avenues where they can minimize taxes but nowhere near the same chances as wealthy business owners and top executives.
They are employee's and are taxed on their salary, where as a lot of executives or wealthy business owners would be able to claim more tax efficient income such dividends, stock options and more. Those are taxed far lower then salary.
I am not tax expert but I believe a few CP's accountants can explain it better.
I don't feel sorry for pro athletes and their tax situation. Personally I think governments should go after big business, wealthy and other tax dodgers
Tavares can cry a river about paying taxes in Canada. He's the one who wouldn't re-sign with the NYI to go to Toronto and he's not complaining? Heck, I have to pay almost 50% in taxes and just getting by living here in the cold white desert working 5-7 days a week! The guy plays and travel pretty much year round. He's got my smallest violin!
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The issue is not whether JT will or won't pay tax. He will.
The question is to WHOM (which country) and WHEN (timing of amounts exigible) such taxes will be paid. Deferring tax can often, but does not always save tax.
The Tax Treaty with the US is a highly complex agreement and can lead to some very strange - and occasionally double-taxed - results. In this case he is relying on a very specific section of the Treaty, an exemption (really more of a relaxation) under it.
Tax people have known this was likely coming for some time, and yes, whether he wins or loses, it will be applied to others. This isn't likely to show up in the Tax Court of Canada any time soon.
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Hey...where'd my avatar go?
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The issue is not whether JT will or won't pay tax. He will.
The question is to WHOM (which country) and WHEN (timing of amounts exigible) such taxes will be paid. Deferring tax can often, but does not always save tax.
The Tax Treaty with the US is a highly complex agreement and can lead to some very strange - and occasionally double-taxed - results. In this case he is relying on a very specific section of the Treaty, an exemption (really more of a relaxation) under it.
Tax people have known this was likely coming for some time, and yes, whether he wins or loses, it will be applied to others. This isn't likely to show up in the Tax Court of Canada any time soon.
The issue is not whether JT will or won't pay tax. He will.
The question is to WHOM (which country) and WHEN (timing of amounts exigible) such taxes will be paid. Deferring tax can often, but does not always save tax.
The Tax Treaty with the US is a highly complex agreement and can lead to some very strange - and occasionally double-taxed - results. In this case he is relying on a very specific section of the Treaty, an exemption (really more of a relaxation) under it.
Tax people have known this was likely coming for some time, and yes, whether he wins or loses, it will be applied to others. This isn't likely to show up in the Tax Court of Canada any time soon.
This is the easiest fix of all the location issues. NHL can't adjust for weather or big city life or home towns. But adjusting for taxes year to year doesn't seem that hard.
How though?
Are you suggesting a team by team adjustment to the salary cap to balance what the players take home?
.
__________________ It's only game. Why you heff to be mad?
I do not know the intricacies of the tax treaty between the two countries but on a surface level if Tavares is a Canadian citizen not residing in Canada more than ~180 days then he would be taxed on that income in the US, so taxing him again on the same earnings in Canada would be double taxation of the same income, which is the whole point of the treaty.
Point being, if he loses and has to pay CRA then what happens to the taxes he already paid the IRS?
Oh Locke where art thou? I am but a measly auditor who took tax 10+ years ago...
must show all Flames games nationally when they play on Saturdays, Mondays, and Wednesdays !!!
