John and Tim react to the audit placed on John Tavares, Captain of the Toronto Maple Leafs, for $8 Million Dollars by the CRA (Canadian Revenue Agency).
Why is this happening? What is happening?
What does it mean for other Canadian Teams?
Who will win?
0:00 – Intro
00:09 – Tim Explains the CRA Situation
1:16 – John Explains Why This is Happening (Tax Loophole)
6:40 – What This Means For Canadian NHL Teams/Players
8:12 – How This Affects Other Canadian Players.
Dropping the Gloves – Episode 599
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15 Comments
Preach John!!
These guys get it.spot on.
Can gov wants to destroy nhl.along with everything else.
Us Canadians all feel the same way brother!! Love your guys show keep up the great work
our country is run by lunatics…
My understanding is Tavares is claiming to have only lived in Canada for 45 days for 2018. CRA must be disputing the number of days he lived in Toronto leading up to the start of the NHL season. If he lived in Canada 183 days, he is to be taxed at the 38%.
F taxes in Canada, our income tax is too high and our sales taxes are ridiculous too.
going after nhl players because they;re white..watch they won't apply this 'tax rule' to raptors players
I'm afraid you have made it a political show – Bye Bye!
You guys missed the point with the loophole.
All subsequent tax years he’s been taxed (and paid) the 38% rate.
Only 2018 is where the loophole was used.
This is due to the fact he was an American resident that year.
It’s the fact he stating he only played 45 days in Canada that year.
Below the threshold of full tax rate rather than the treaty rate for cross border citizens.
No other bonus money is claimed this way by other players in long term Canadian contracts.
Welcome to trudeaus Canada 🤡
I think they should pay taxes like everyone else in the country. There is already a problem with in the nhl that certain states have tax systems that are beneficial. This gives them an unfair advantage when signing free agents. I don't know what the answer is but things need to change.
As a Canadian. I agree taxes are too high. But athletes need to pay their fair share. I was shocked to hear they only pay 15%. I don't support Trudeau either. He needs to go.
Bottom line if you don’t have to play in Canada don’t !
Great take on the politics of this situation, John.
Sports commentators should not be talking about taxes and “loopholes”: these two guys are dead wrong. If an athlete resides in Canada and receives a signing bonus from a Canadian team, it is already taxed at top rates (53.5% in Ontario, not 38%): Tavares paid 53.5% on every penny he received except the first $15 million received while still a U.S. tax resident (before he moved to Toronto). The CRA dispute only applies to that first amount, and he probably paid US federal and state tax of about 43% anyway.
This case is only really relevant to athletes who play for a Canadian team but say they don’t live here: that they live in Florida (a zero tax state) for example. They argue that they owe 37% US federal tax (plus 15% Canadian tax, which they credit against the 37%). The CRA should have gone after those guys, not Tavares.
Bottom line? This case means very little, except for players who argue that, while they play for a Canadian team, they don’t really live here.