Tavares extension -> May Reportedly Happen in the Near Future

[rumman]

Honestly I see no real upside to resigning Tavares for even league minimum. This isn't because of the player he is or will become as he declines but more the fit moving forward and him blocking a player like Minten, Cowan or even Grebenkin. As much as people worry about the 2C spot past this year there are UFA's the Leafs can look at (Bennett for one) or trades ( Norris if he can prove he is healthy). They will have around 30 million in cap space with the potential of a lot more to spend. Depending how this season works out and how prospects develop The Leafs could have 3 ELC's in the top 9 next season leaving them lots of cap space to add a 2C and address any other holes.

Not bringing him back is the first dtrp in changing the culture……..

 

[Dale Gribble]

Not bringing back Tavares and Marner would be a necessary change for the whole team in my humble opinion.

However, I don't have much faith in Treliving to spend the cap savings efficiently.

 

[Mess]

MarkerZone believes that depending on the legal battle’s outcome and the fact that Tavares is no longer captain and is entering the last year of his current deal, he may be done for good with the Maple Leafs.



This summer hasn’t been the best for veteran forward John Tavares. Not only was he stripped of the Maple Leafs’ captaincy when Auston Matthews took over the C in Toronto, but he’s also been dealing with a lawsuit off the ice. Reports recently emerged that Tavares is in a $15.25 million legal battle with Canada Revenue Agency (CRA), an amount that Tavares himself argues. The CRA contends that Tavares received $15.25 million in signing bonus and it wants it back, while but Tavares maintains that a provision in his contract entitles him to millions in tax savings. The former Leafs’ captain claims that they taxed him incorrectly back in 2018 when he first signed with the Leafs after spending nine years in the United States with the New York Islanders.

 

[notDatsyuk]

MarkerZone believes that depending on the legal battle’s outcome and the fact that Tavares is no longer captain and is entering the last year of his current deal, he may be done for good with the Maple Leafs.



This summer hasn’t been the best for veteran forward John Tavares. Not only was he stripped of the Maple Leafs’ captaincy when Auston Matthews took over the C in Toronto, but he’s also been dealing with a lawsuit off the ice. Reports recently emerged that Tavares is in a $15.25 million legal battle with Canada Revenue Agency (CRA), an amount that Tavares himself argues. The CRA contends that Tavares received $15.25 million in signing bonus and it wants it back, while but Tavares maintains that a provision in his contract entitles him to millions in tax savings. The former Leafs’ captain claims that they taxed him incorrectly back in 2018 when he first signed with the Leafs after spending nine years in the United States with the New York Islanders.

First, it was a matter of he thinks he was taxed correctly in 2018, but it's only recently that Revenue Canada says he was under taxed.

The dispute stems from different interpretations of the US/Canada tax agreement. I don't recall the exact numbers, but he claimed the bonus was received in the US, so he should pay the US rate (47%?), consisting of 15% to Canada and the rest to the US. Revenue Canada says he should have paid the Canadian rate (53%?) with 15% to the US and the rest to Canada. (Presumably if the two governments can agree to the latter version, he can claim a chunk back from the US.)

But I'm not sure why the tax battle will force him to leave Toronto - is the implication that he will run away to the US to try to avoid the issue?

 

[Menzinger]

First, it was a matter of he thinks he was taxed correctly in 2018, but it's only recently that Revenue Canada says he was under taxed.

The dispute stems from different interpretations of the US/Canada tax agreement. I don't recall the exact numbers, but he claimed the bonus was received in the US, so he should pay the US rate (47%?), consisting of 15% to Canada and the rest to the US. Revenue Canada says he should have paid the Canadian rate (53%?) with 15% to the US and the rest to Canada. (Presumably if the two governments can agree to the latter version, he can claim a chunk back from the US.)

But I'm not sure why the tax battle will force him to leave Toronto - is the implication that he will run away to the US to try to avoid the issue?

That author is making some massive assumptions based on what appears to be a very poor understanding of the tax issues.

 

[Evilhomer]

That author is making some massive assumptions based on what appears to be a very poor understanding of the tax issues.

Shocking that a random "journalist" would not be able to properly analyze the Income Tax Act and the US/Canada tax treaty. It's why my law firm has a 15 person tax department. The interpretation of Canadian tax law should be left to Canadian tax lawyers.

 

[notDatsyuk]

Shocking that a random "journalist" would not be able to properly analyze the Income Tax Act and the US/Canada tax treaty. It's why my law firm has a 15 person tax department. The interpretation of Canadian tax law should be left to Canadian tax lawyers.

Absolutely. I used to work for the US division of Manulife (which became John Hancock when we bought them out), and the tax lawyers loved me because I was one of the few systems people who could understand them.

US tax laws are probably more confusing than Canadian, but for really whacko it was the insurance regulations, which could, and usually did, vary hugely from state to state.