What is wrong you, I don't understand how much clearer I can make it. I've simply stated it and you just go off on a novel where most of it wrong.
This is how it works, because f***ing hell you refuse to look into yourself. This is honestly good information going forward so pay attention.
Player makes 10M a year. A player can dump up 50% of their salary tax free into the RCA. Which continues to grow at a small percentage every year. Imagine it's 0.1% on 5 Million, every year until the player retires. That 5M every year gets zero tax and gets capital gains until the player retires. Player never becomes a Canadian resident, owns property in florida, or arizona, or Washington state, and only rents in Canada. Because of travel in general, the american player doesn't become a Canadian resident because they qualify for living in Canada for over half a calendar year. Their bonuses is are taxed in where their home state is, and salary is subject to jock tax and taxes in the city they play.
An american player with zero f***ing effort can lower their effect tax rate by 10-13% just by not buying a property in Canada. They can further have gains because the RCA generates interest on however much money that's in there. They further have benefits from the American-Canadian tax treaty.
There is zero complication here. If you're Canadian and playing on a Canadian team, you put your money in an RCA and hope your interest gains more than your tax. But I'm not talking about a Canadian player. I specifically am speaking about an American player, in a thread about an American player. So how is this hard for you to understand?
Sure. Fair in the American player. For some reason I thought this was in the “stamkos” thread. I was looking in both.
You quoted Allan Walsh. Who was not speaking specifically about American players. His statement was incorrect. He never once says I can do this for an American player. I’m pretty sure he has 0 American clients. So it’s an odd quote to use about an American player
That being said. It’s still not Nearly as clear as
You think it is. This was discussed at length as Matthews. An American. Is making big money in Canada.
1.) you can’t just “claim residency”. You get taxed
On your income “where your economic ties are the greatest”. That covers
-where you spend most of your time
-if you own a property
-if you own a car
-if you have children. If they go to private school/funding etc.
every year for that year you have to claim residency. If you play on a Canadian team with training camps and Canadian games..... that counts. If you make the playoffs
That counts.
to make “residency work” you can’t own a house, have to rent a different condo every year. Cant have kids.
Most accountants say residency works the first year. (Like Tavares) but an accountant who had like 20 nhl players specifically said that his clients tend not to be able to do maintain residency over their careers.
In theory. Things work. But meet a Canadian girl or have a kid who lives in Canada or want to
Buy a house it doesn’t work.
Basically you still have to jump through a whole ton of hoops to try to even the playing field
And their are no guarantees.
you also have to commit to retirement in a certain area.
finally. There is No such thing as tax free here.
you get a temporary tax rebate. Then when you go to withdraw your money
You get taxed “hopefully” at a lower rate but there are no guarantees.
it’s much more complicated than you think it is. The idea that the government isn’t chasing their money is insane.
the idea that a player making millions of taxable income in Canada while living in Canada abs working in Canada can just not pay it because they don’t buy a house is silly.
The NBA is different. Because there
Is 1 team. They literally
Play 50/50 and spend more
Time in the states.
Players on Canadian teams spend more time and play more Games in Canada. Their economic ties are greater to Canada. They play 75% of their games In Canada
