Lol does this satisfy your itch to be proven wrong:
On February 5, Auston Matthews signed a 5-year contract extension with the Leafs for $58.15M. Fans have reason to be thrilled today, but Canadian taxpayers may be a bit irritated.
www.crowe.com
"From a tax perspective in Canada, a signing bonus is simple: the amount of the bonus is treated as ordinary employment income, and is taxable in the year received. But, when a U.S.-resident athlete receives a signing bonus to play in the NHL for a Canadian team, a special quirk of the Canada-U.S. income tax treaty kicks in.
The treaty provides that a signing bonus paid by a Canadian NHL team to a U.S.-resident player would be taxable in Canada – but that tax may not exceed 15 per cent of the gross amount of the payment."
This article pretty much should put to rest this nonsense on taxes.
here is the answer to the tax question:
From a tax perspective in Canada, a signing bonus is simple: the amount of the bonus is treated as ordinary employment income, and is taxable in the year received. But, when a U.S.-resident athlete receives a signing bonus to play in the NHL for a Canadian team, a special quirk of the Canada-U.S. income tax treaty kicks in.
The treaty provides that a signing bonus paid by a Canadian NHL team to a U.S.-resident player would be taxable in Canada – but that tax may not exceed 15 per cent of the gross amount of the payment.
On February 5, Auston Matthews signed a 5-year contract extension with the Leafs for $58.15M. Fans have reason to be thrilled today, but Canadian taxpayers may be a bit irritated.
www.crowe.com