WillNy29
Registered User
- Jun 20, 2018
- 1,195
- 1,433
that's not how residency works; Canada can claim you are resident using any of the significant residential ties or secondary residential ties how they deem fit. For example dependency is considered in the residential test and a player like Seguin whose mom deposits his Biosteel checks in Brampton to her account can still be considered a Canadian tax resident and have to pay Canadian taxes because of this if they want him to. They can also use Sojourning rules to do so. American residency isn't based on sojourning or residential ties its based on citizenship or resident alien tests.Of course you have more knowledge in your field than me. But i have worked with a lot of people who did a lot of things… but that doesn’t make me an expert in what they do.
This isn’t my opinion. multiple agents. Players. GMs and accountants have openly come out and explained the differences. There have been published articles. Us platers who want to maintain residency can’t own property and lease cars here.
Lewis gross group actually makes spread sheets for take home taxes in each market. You are talking about extra loopholes and living arrangements to TRY to make up for disadvantages that don’t work. Or else there would be no difference.
Simple question. You are an accountant. Why are players in Dallas. Vegas. Florida all taking 2% less?
Coincidence?
They're paying taxes where they earn the money so where the game is played and then also on all world wide income in Canada after which they get international tax credits based on tax treaties (this is an oversimplification for more of an average Joe rather than a celebrity).
The other thing you have to consider is the amount of tax loopholes available to millionaires that you are forgetting. This is why American players in tax heavy markets in Canada have been relying on bonuses as a solution; the specific treaty for cross border taxation outlines that signing bonuses executed in Canada can only be taxed at 15%. That's why Matthews contract is majority signing bonus laced. The remaining tax for American players in Canada is charged only on Canadian duty days (games played here).
Anyways it's a much more interesting topic than this and a lot more complex. I left the tax world a while back because the Canadian tax act makes my head hurt and financial reporting doesn't but this is the stuff I remember from my time there.