vincent1999
Registered User
- May 5, 2014
- 257
- 1
calling for a tax lawyer
I'm not a tax lawyer, but I still think that your statement is fraught with a lot of stuff that isn't actually per se true, and frankly I'm confused, what you are saying just doesn't make sense to me.
I've seen some journalism/ reporting that substantiates essentially the points I was making. ie a player on a Canadian hockey team pays an extra $1 million in income tax on a $4 million salary as compared to a player on an American team (such as those in the state of Texas and Florida). The "nationality" of the player, whether it be Canadian, American, Swedish, Russian, Slovakian, exactly how is that supposed to be a determinant in terms of employment income and taxation??? Your percentage differences, aren't in the ball game as to the difference for Canadians or Americans playing for teams in the US or Canada. Hell, there might be a 15% difference for an American player playing in Dallas versus one playing in New York. Right???? State tax in the US varies by quite a bit from one state in another.
183 days might be relevant wrt snow birds, but hockey players and hockey players WITH FAMILIES, and investments, and real estate--- there is a whole bunch of stuff to consider.
Also, the US taxes on "world-wide income" (unlike Canada), and I can't imagine that income earned on employment work performed in the US to an American hockey team by a non-American player would be allocable to the Canadian Tax system and not be taxed by the federal US (and state) tax system. Hell, the US skims off some of the dividend income that I get on US investments, and I don't live one day in the US. Being a Canadian resident doesn't get a player playing for an American hockey team off the hook for paying US taxes (and state taxes if applicable) on employment income earned as being for instance a contractual member of the Dallas Stars hockey team/ organization.
Also, your idea about earning income in 4 Canadian provinces and 16 US states depending on where one plays the hockey game, just ... to me .... makes no sense. Commonsense suggests that if a player plays for the Dallas Stars hockey team, that his income is treated for tax purposes as US income and as income within the state of Texas whether he is American, Canadian, or "Hungarian". And a Dallas Star's player isn't paying Canadian and Alberta income tax on the game or two every year that he plays in Edmonton.
And a Canadian resident/ player doesn't pay income taxes relevant to Texas and the US when he plays a game in Dallas.
183 days rule for tax residency, 10k/day exemption, and international tax credits.
The NHL schedule ensures that Americans on Canadian teams do not have to spend more than 183 days living in Canada, which means that they are able to claim their tax residency outside of Canada. Players earn their money across four different provinces and sixteen states. Some American cities even have city taxes on income.
Playing one game against every team, even if it takes two years to do a home and away, helps taxation parity within the league.
I'll baseline American resident playing for an American team at 0, and then the other combinations relative to that in a percentage. This is derived from Buffalo and Toronto.
1) American resident playing for an American team: 0
2) American resident playing for a Canadian team: -2.4%
3) Canadian resident playing for an American team: -8.5%
4) Canadian resident playing for a Canadian team: -4.2%
If you're playing in Alberta or BC, you're even closer to Scenario 1 due to taking home more money from lower provincial taxes.
If you're playing in Florida, Nevada (!) or Texas, then you're laughing your way to the bank. If you're a Canadian resident playing in a state without income tax, you're paying about as much as you would in taxes were you playing in Canada.
So we do have a signing disadvantage for American players, but it's not severe. Most people would sacrifice 2.4% of their total pay if it were the difference between unrewarding and rewarding work (or no playoffs versus playoffs) and a good quality of life.
American teams trying to attract Canadians who want to spend their time off in BC are at a bigger disadvantage than we are--unless they're one of the three aforementioned states.
I'm not a tax lawyer, but I still think that your statement is fraught with a lot of stuff that isn't actually per se true, and frankly I'm confused, what you are saying just doesn't make sense to me.
I've seen some journalism/ reporting that substantiates essentially the points I was making. ie a player on a Canadian hockey team pays an extra $1 million in income tax on a $4 million salary as compared to a player on an American team (such as those in the state of Texas and Florida). The "nationality" of the player, whether it be Canadian, American, Swedish, Russian, Slovakian, exactly how is that supposed to be a determinant in terms of employment income and taxation??? Your percentage differences, aren't in the ball game as to the difference for Canadians or Americans playing for teams in the US or Canada. Hell, there might be a 15% difference for an American player playing in Dallas versus one playing in New York. Right???? State tax in the US varies by quite a bit from one state in another.
183 days might be relevant wrt snow birds, but hockey players and hockey players WITH FAMILIES, and investments, and real estate--- there is a whole bunch of stuff to consider.
Also, the US taxes on "world-wide income" (unlike Canada), and I can't imagine that income earned on employment work performed in the US to an American hockey team by a non-American player would be allocable to the Canadian Tax system and not be taxed by the federal US (and state) tax system. Hell, the US skims off some of the dividend income that I get on US investments, and I don't live one day in the US. Being a Canadian resident doesn't get a player playing for an American hockey team off the hook for paying US taxes (and state taxes if applicable) on employment income earned as being for instance a contractual member of the Dallas Stars hockey team/ organization.
Also, your idea about earning income in 4 Canadian provinces and 16 US states depending on where one plays the hockey game, just ... to me .... makes no sense. Commonsense suggests that if a player plays for the Dallas Stars hockey team, that his income is treated for tax purposes as US income and as income within the state of Texas whether he is American, Canadian, or "Hungarian". And a Dallas Star's player isn't paying Canadian and Alberta income tax on the game or two every year that he plays in Edmonton.
And a Canadian resident/ player doesn't pay income taxes relevant to Texas and the US when he plays a game in Dallas.