Apologies if this has been answered but I don't really wanna sift through 30+ pages looking for the answer.
Does Drai own property in a lower tax area? Just curious why he decided to take the vast majority of his deal in signing bonuses. Wouldn't his bonus be taxed like 50% each year if his principal residence is in Alberta?
I'm not sure it matters that much, there aren't many lower tax areas in Canada than Alberta. Taking a signing bonus does a bunch of stuff
- Gets you money faster, better for present values
- Makes it harder to be boughtout (as unlikely as that is)
- Signing bonus is not based on games played so they are payable in the event of a lockout
- lose less to jock tax (paying tax in each city you play in)
Theoretically he could have property in some tax free US state but I mean, he's still going to have to file a Canadian tax return since there's almost no way he's considered a non-resident as he spends the majority of his year in Canada. Then you have to file on world income anyway. Maybe there's some other way to dodge the Alberta tax but I don't really think that's the purpose of all the signing bonuses.
Also, I'm of the opinion, if you're making 14M USD in Canada, you can afford the tax since you strictly win on the FX rate. Though that's a controversial topic on HF, since most people argue living in Canada is hyper costly compared to the US.. true in some cities but I would definitely argue it's not in Edmonton