Idea re taxes and salary cap

[Legion34]

Ya I feel bad for Marner, only having 13 million left, after paying 15% tax on his signing bonus,
Not much left for investing , with that 13 million. (Outside of a deferred program even though you can still invest in those).

I feel bad for him. He could have made so much more out of the same money in a tax free market

 

[BruinsBtn]

Lol it’s explained fully Feel free to read it and get back to me.

There's nothing to explain bud. The money can be invested, you were wrong.

 

[Golden_Jet]

I feel bad for him. He could have made so much more out of the same money in a tax free market

Oh you mean that extra 1.5 million he can invest inside a deferred program. Your just burying yourself.

13 million US > 1.5 million.

Not sure how many times you’ve been told 50% of money in an RCA can be invested, but go ahead and double down.

 

[Legion34]

There's nothing to explain bud. The money can be invested, you were wrong.

Did you read it where I explained it?

hope you learned something !

 

[Chrisinroch]

Can the cap be adjusted based on weather also? Teams from the north should have a larger cap to make it more even.

And cost of living.
And amount of travel
And access to side sponsorships.
And crime rate
And quality of schools.
And access to youth hockey programs for kids.

 

[Legion34]

Oh you mean that extra 1.5 million he can invest inside a deferred program. Your just burying yourself.

13 million US > 1.5 million.

Not sure how many times you’ve been told 50% of money in an RCA can be invested, but go ahead and double down.

sure he can. Just like you can probably invest 50% of your income in an rrsp.... is that smart?

marner would have to lock in 7.5 million until he retires...,, then pay taxes on it or move

great plan.

 

[Golden_Jet]

How much tax would be fair to Marner to pay on the 20 million Canadian he made last year.

 

[Golden_Jet]

sure he can. Just like you can probably invest 50% of your income in an rrsp.... is that smart?

marner would have to lock in 7.5 million until he retires...,, then pay taxes on it or move

great plan.

How he can get 13 million US outside of deferred plans, so your 7.5 makes no sense.

 

[Golden_Jet]

sure he can. Just like you can probably invest 50% of your income in an rrsp.... is that smart.

No it’s not smart , your better off investing 100% of your RRSP in investments.

 

[DistantThunderRep]

Lol it’s explained fully Feel free to read it and get back to me.

I like how you tactically ignored @mouser facts and continued to speak false information. Keep in mind, there is truth in what you have said, a very little amount, but for the majority of it, you are wrong. I am born and raised in Vancouver, still live over here, so you can't use your xenophobic rhetoric about "Are You Canadian?". @mouser summed up everything in a nice little bow, and even politely asked you to back up your claims in his post, which you have yet to even address. Just take the L man, its 2020, there are way more issues to complain about then some millionaires saving money to make their lives somehow better. You gain nothing from investing this much effort into this. You seem like a smart dude, use that effort to invest your money how you deem fit, and let the millionaires with high end accountants who specialize in hiding money and skimping governments for taxes do their job. We peasants will never truly understand what advantages the ultra rich have.

 

[DistantThunderRep]

I feel bad for him. He could have made so much more out of the same money in a tax free market

He still would have had to pay Canadian taxes if he lived in the states. As long as he remained a Canadian Citizen.

 

[Damisoph]

Cap adjustments for taxes is not realistic. Just give teams a discount towards the cap for re-signing their own draft picks.

 

[Legion34]

I like how you tactically ignored @mouser facts and continued to speak false information. Keep in mind, there is truth in what you have said, a very little amount, but for the majority of it, you are wrong. I am born and raised in Vancouver, still live over here, so you can't use your xenophobic rhetoric about "Are You Canadian?". @mouser summed up everything in a nice little bow, and even politely asked you to back up your claims in his post, which you have yet to even address. Just take the L man, its 2020, there are way more issues to complain about then some millionaires saving money to make their lives somehow better. You gain nothing from investing this much effort into this. You seem like a smart dude, use that effort to invest your money how you deem fit, and let the millionaires with high end accountants who specialize in hiding money and skimping governments for taxes do their job. We peasants will never truly understand what advantages the ultra rich have.

1.) huh? I don’t know what I ignored? I answered what mouser said??????


2.) xenophobic? That’s embarrassing no one is saying anything about a fear of a country. It’s about actual experience.

the reality is Canadians who have RCA and RRSP and actively contribute to these programs like myself know how they work.... because I do it every year.

do you? It’s not a “Canadian pride thing” ..... it’s an “i actually do this every year thing”.

If you don’t contribute then you can’t explain it. If you do and you think I’m. Wrong. You may want to talk to your accountant.

the facts are simple.

1.) agents GMs. Players. Accountants all say that it is a massive advantage. ONE agent one time said different. In that case he was contradicting an agent and GM

dubas. Burke. Johnson. Methot. Seguin. Lewis gross. Mike weaver. Off the top of my head all said it. Gavin sports group. Jeff petry/radulovs agent. Mcdavid. Poile. Tons of evidence from actual people in the field.

2.) there is corroborating evidence in that you can actually match up the take home pay between high tax and low tax markets. Every time a low tax team gets remotely stable. The discounts come.


3.) the arguments for RCA etc show an incredible amount of hoops like locked in money and moving (probably with a young family) when you retire.

it doesn’t work. The tax advantages are absolutely real. You always argue against it. But the facts are the same.

 

[DistantThunderRep]

1.) huh? I don’t know what I ignored? I answered what mouser said??????


2.) xenophobic? That’s embarrassing no one is saying anything about a country. It’s about actual experience.

the reality is Canadians who have RCA and RRSP and actively contribute to these programs like myself know how they work.... because I do it every year.

do you? It’s not a “Canadian pride thing” ..... it’s an “i actually do this every year thing”.

If you don’t contribute then you can’t explain it. If you do and you think I’m. Wrong. You may want to talk to your accountant.

the facts are simple.

1.) agents GMs. Players. Accountants all say that it is a massive advantage. ONE agent one time said different. In that case he was contradicting an agent and GM

dubas. Burke. Johnson. Methot. Seguin. Lewis gross. Mike weaver. Off the top of my head all said it. Gavin sports group. Jeff petry/radulovs agent. Mcdavid. Poile. Tons of evidence from actual people in the field.

2.) there is corroborating evidence in that you can actually match up the take home pay between high tax and low tax markets. Every time a low tax team gets remotely stable. The discounts come.


3.) the arguments for RCA etc show an incredible amount of hoops like locked in money and moving (probably with a young family) when you retire.

it doesn’t work. The tax advantages are absolutely real. You always argue against it. But the facts are the same.

You didn't address a thing he said on his original post which laid out everything about the RCA perfectly. You didn't even acknowledge the fact the NBA banned RCA's because of the distinct advantage it gave to Toronto.

Here are somethings about the RCA's that you refuse to talk about:

1. Contributions are 100 per cent tax-deductible by the employer, and are a non-taxable benefit in the hands of the employee. Taxes do not apply until the money is withdrawn during retirement.
2. RCAs are exempt from payroll and healthcare taxes.
3. RCAs are exempt from provincial pension regulators.
4. Assets in an RCA investment account compound taxfree.
5. An RCA plan can provide “golden handcuffs” as a reward for continued service.
6. An RCA allows the buyback of previous RRSP contribution room prior to 1991.
7. An RCA provides a pension/ retirement benefit for executives who are not permitted to make RRSP or pension contributions due to non-resident status.
8. Assets held in an RCA are creditor-proof and are separate from the sponsoring company’s assets, and are therefore protected from the sponsor’s creditors.
9. Assets in an RCA are excluded from the holder’s estate and are not subject to probate fees when a beneficiary is named.
10. Owners of RCAs can arrange to borrow up to 90 per cent of the amount of the RCA contribution and loan it back to their operating company.
11. Owners/key employees can retire offshore to a lower-taxrate jurisdiction where they can pay as low as 15 per cent tax on the proceeds from their RCA.
12. RCAs can be set up to defer tax on severance packages.
13. Small- and medium-sized business owners and partners can use an RCA as part of their exiting and succession planning.

Money is invested in an RCA through a trustee and is divided equally between two accounts: the RCA Investment Account and the Refundable Tax Account. The Refundable Tax Account is administered by CCRA. All funds in the Refundable Tax Account are refundable to the recipient of the RCA once money is withdrawn from the RCA during retirement.

In case you wanted to actually learn some stuff about an RCA instead of mixing it up with RRSP's, RRIF's, and TSFA's.

The facts are simple, a whole league that pretty much prints money on a regular basis (NBA) banned the use of RCA's for a singular team because of the clear advantage it provided to the team. But make up your narrative.

EDIT: Really want to emphasize Point 11.

 

[NOTENOUGHJTCGOALS]

actually. There are many financial planners that do think RRSP/RCA are a scam. They do have a purpose. But it’s not at all what people here are suggesting. In No way do RRSP/RCA replace tax free cash in hand.

ask yourself

The Canadian government will conspire
With the banks to allow athletes to cheat on their taxes? Does that make sense

I agree that many think the RRSP and RCA are a scam. And that athletes cannot cheat on their taxes.

So the Canadian teams need a higher cap.

 

[Golden_Jet]

You didn't address a thing he said on his original post which laid out everything about the RCA perfectly. You didn't even acknowledge the fact the NBA banned RCA's because of the distinct advantage it gave to Toronto.

Here are somethings about the RCA's that you refuse to talk about:



Money is invested in an RCA through a trustee and is divided equally between two accounts: the RCA Investment Account and the Refundable Tax Account. The Refundable Tax Account is administered by CCRA. All funds in the Refundable Tax Account are refundable to the recipient of the RCA once money is withdrawn from the RCA during retirement.

In case you wanted to actually learn some stuff about an RCA instead of mixing it up with RRSP's, RRIF's, and TSFA's.

The facts are simple, a whole league that pretty much prints money on a regular basis (NBA) banned the use of RCA's for a singular team because of the clear advantage it provided to the team. But make up your narrative.

EDIT: Really want to emphasize Point 11.

Looking forward to next reply good on you , mouser and bostonbtn.

 

[DistantThunderRep]

I agree that many think the RRSP and RCA are a scam. And that athletes cannot cheat on their taxes.

So the Canadian teams need a higher cap.

You are taxed on your profits you make from both, not the contributions made.

 

[Legion34]

You didn't address a thing he said on his original post which laid out everything about the RCA perfectly. You didn't even acknowledge the fact the NBA banned RCA's because of the distinct advantage it gave to Toronto.

Here are somethings about the RCA's that you refuse to talk about:



Money is invested in an RCA through a trustee and is divided equally between two accounts: the RCA Investment Account and the Refundable Tax Account. The Refundable Tax Account is administered by CCRA. All funds in the Refundable Tax Account are refundable to the recipient of the RCA once money is withdrawn from the RCA during retirement.

In case you wanted to actually learn some stuff about an RCA instead of mixing it up with RRSP's, RRIF's, and TSFA's.

The facts are simple, a whole league that pretty much prints money on a regular basis (NBA) banned the use of RCA's for a singular team because of the clear advantage it provided to the team. But make up your narrative.

EDIT: Really want to emphasize Point 11.

1.) In my defence. I had like 50’posts to respond to. Didn’t see that in the list.

2.) I did address the NBA. That is an American League with American players who live in America and play 41 games in America. It’s entirely different than who play 55-65
Games a year in Canada. Totally different circumstances.

3.) the majority of those points have no bearing on players who are retiring at 35...
At all.....


basically here it is. An RCA is largely (not exactly) an RRSP for rich people. They were originally developed for that purpose . Every person gets an RRSP amount. Guys like marner CAN spend more than their allotted amount.

RCAs are NOT the be all end all. Many financial planners recommend them. Sure. Not all. They can work for some to mitigate some of the losses that would be created by tax differences. IF you are willing to jump through big hoops.

But in NO WAY do they Ever trump cash in hand.

10 million cash in hand today is better than 2 million a year over 5 years. It is WAY better to have 10 million in hand rather than
-pay 50% tax on 5
-defer taxes to probably pay the same in another year.

IF a player in Canada takes out that money while playing in a Canadian market. They get taxed the same on it. NO savings. That means they have to hold the money until they retire. That robs them
Of financial flexibility.

when you take out your RCA/RRSP. It’s income. It gets taxed. The more you take out. The more you get taxed. If you are in Canada and you take the money out you get taxed.


point 11 is mousers argument. In theory that works. But in practice. The government wants its money. Sure you can be a 35 year old
Player and decide to retire to a tax free
State...... but who says you want to retire
There? Having to lock up your money for 15 years and dictate where you retire? At 35? When you have a family etc? That makes no sense in the real world.

cash in hand is way better than cash locked
Up and having to move your family.


Mouser seems to believe that a player will just become a “non resident” for a weekend, collect the cash and come back. In reality the government will be all over that. This seems like people aren’t considering real life both in terms of personality and that the government isn’t aware of this and just let’s people screw them out of millions

 

[Legion34]

You are taxed on your profits you make from both, not the contributions made.

you get taxed when you withdrawal the money. It becomes income.

honest non xenophobic Canadian question. Do you have RRSP?

 

[JoeThorntonsRooster]

you get taxed when you withdrawal the money. It becomes income.

honest non xenophobic Canadian question. Do you have RRSP?

My "honest non-xenophobic Canadian" identifier has people asking a lot of questions already answered by the identifier.

 

[DistantThunderRep]

1.) In my defence. I had like 50’posts to respond to. Didn’t see that in the list.

2.) I did address the NBA. That is an American League with American players who live in America and play 41 games in America. It’s entirely different than who play 55-65
Games a year in Canada. Totally different circumstances.

3.) the majority of those points have no bearing on players who are retiring at 35...
At all.....


basically here it is. An RCA is largely (not exactly) an RRSP for rich people. They were originally developed for that purpose . Every person gets an RRSP amount. Guys like marner CAN spend more than their allotted amount.

RCAs are NOT the be all end all. Many financial planners recommend them. Sure. Not all. They can work for some to mitigate some of the losses that would be created by tax differences. IF you are willing to jump through big hoops.

But in NO WAY do they Ever trump cash in hand.

10 million cash in hand today is better than 2 million a year over 5 years. It is WAY better to have 10 million in hand rather than
-pay 50% tax on 5
-defer taxes to probably pay the same in another year.

IF a player in Canada takes out that money while playing in a Canadian market. They get taxed the same on it. NO savings. That means they have to hold the money until they retire. That robs them
Of financial flexibility.

when you take out your RCA/RRSP. It’s income. It gets taxed. The more you take out. The more you get taxed. If you are in Canada and you take the money out you get taxed.


point 11 is mousers argument. In theory that works. But in practice. The government wants its money. Sure you can be a 35 year old
Player and decide to retire to a tax free
State...... but who says you want to retire
There? Having to lock up your money for 15 years and dictate where you retire? At 35? When you have a family etc? That makes no sense in the real world.

cash in hand is way better than cash locked
Up and having to move your family.


Mouser seems to believe that a player will just become a “non resident” for a weekend, collect the cash and come back. In reality the government will be all over that. This seems like people aren’t considering real life both in terms of personality and that the government isn’t aware of this and just let’s people screw them out of millions

If you're argument is Cash in Hand then sure, I can agree with you. But this is all about a benefit of avoiding taxes. The point was from the start was that the RCA provides a benefit that evens out the tax advantage. A person doesn't have to spend the whole time in the tax free state, just a little over a half a year to be considered a resident. Plenty of snowbirds do this already, so I find it hard to believe a young~ish player who is worth millions wouldn't want to spend 6 months out of the year in Miami or Tampa with sunny weather and a mass amount of wealth.

 

[Legion34]

Looking forward to next reply good on you , mouser and bostonbtn.

To watch them try to galaxy brain themselves around a well known and established tax disparity in the NHL that has been acknowledged and supported by

active players agents GMs accountants?

Why do people refuse to believe the experts who talk about this every day? It’s so bizarre

 

[DistantThunderRep]

you get taxed when you withdrawal the money. It becomes income.

honest non xenophobic Canadian question. Do you have RRSP?

This is true.

I do have one provided from work who matched contributions. Luckily I didn't have to use it when I bought my townhouse in Vancouver. I had a friend who dipped into a trust that his parents set up when buying his place, and well...that f***ed him hard later.

 

[NOTENOUGHJTCGOALS]

You are taxed on your profits you make from both, not the contributions made.

That's what they want you to think. Are you some sort of RRSP lobbyist?

 

[DistantThunderRep]

That's what they want you to think. Are you some sort of RRSP lobbyist?

I personally hate RRSP's. But won't knock anyone who contributes to them.