And people complained of the unfair advantage Toronto had with endorsements, market size, and long term injury loopholes.
The best part is you hear people ***** about how the Leafs should be fined for this and that, and how endorsements should not be allowed to be part of it. Yet these same people turn a blind eye on here to Tampa spending x amount of dollars on 7 players, and we spend the same on 3, and because we don't have the same tax structure, we can't keep as many.
It's such bull****, I have been going on about this for a while, it's a damn advantage! maybe not as big a deal as I think, but still a competitive advantage in a league that's all about parity.
I mean you have a winning team, best weather, privacy, and you get paid more.... so you have your own cap so to speak....BS
The league chopped the balls off teams like MTL and Toronto cap wise, and gave it to others. how long before other low or no tax states just start working towards Tampa's model.
I posted this in another thread:
There are tax treaties between countries and you get taxed differently in every different jurisdiction. The straight across "tax analysis" that they show in the media when it comes to signing is bologne. Take it from someone who has worked in tax, you would be surprised at the amount of tax credits and deductions available in these high tax areas (Ontario). There is a specific tax treaty that applies to athletes known as the jock tax (also applies to celebrities).
Another thing is the CRA may deem you a Canadian resident if it believes you have primary ties in the country (parents, spouse, place of dwelling, bank accounts etc) in which case you are to pay taxes on all world wide earned income including income earned in Florida for example).
Every single player and/or team employs a very smart tax accountant/tax lawyer who has already minimized all players tax burdens to the minimal possible. Its highly likely that taxes dont even make a large enough difference to be material in making decisions if you have a well educated agent.
That only income taxes...lets not forget property taxes and other levies.
Another misconception in Ontario atleast is that if you're in the highest tax bracket you pay taxes of 40 some odd %. That's not true you pay taxes in a tiered system which creates a marginal tax rate (a lot lower than 45% or whatever the number is this year)
It's not as simple as people try to make it sounds. There are so many things a good tax accountant does that makes half these "boogeyman" tax issues disappear.
Taxation for Tavares wouldn't have mattered because if he lives in Toronto in the summer he's considered a resident so he will pay tax on income earned in Tampa.
These players can also create holding corporations for their endorsements to never get taxed at the personal rate but rather the corporate rate (which is lower) and then pay themselves dividends out of those corporations (S.85-86 roll overs)
The media is lazy and doesn't want to look this all up for you.
