John Tavares: His Battle with the Canada Revenue Agency (and Its Impact on the Canadiens)

Charles-Alexis Brisebois
John Tavares: His Battle with the Canada Revenue Agency (and Its Impact on the Canadiens)
Credit: Capture d'écran/Twitter

In 2018, John Tavares signed with the Maple Leafs.

The Montreal native was returning home after years spent in the United States. He did so thanks to a lucrative contract offer from the Maple Leafs. People in New York didn't take it well.

Among the incentives used to lure the star to the city was an $8 million signing bonus. And eight years later, it's still an issue.

It was discussed a few years ago, but the issue is still in the news right now: Tavares believes he shouldn't have been taxed on that amount in Canada. He argues that he could have been taxed in the United States, where he was living when he received the money.

He will be called to testify in the case.

Naturally, this is a case that will be followed very closely by the various National Hockey League teams based in Canada.

Why? Because it lays the groundwork for a broader discussion within the NHL.

We know that, for players, bonuses are used primarily to get money faster (a dollar today is worth more than a dollar tomorrow), but sometimes also to avoid the CRA.

If Tavares loses, some Canadian teams are going to tear their hair out. Good thing the Canadiens' GM is bald…

Keep in mind that the Canadiens, who convinced some young players to sign at a discount (in part) because of the high signing bonuses, will see the collective bargaining agreement restrict signing bonuses on player contracts starting next month.

Will Jeff Gorton still be able to claim that the Canadiens have ways to get around Quebec's tax laws? That'll be another discussion if Tavares loses his case, I imagine.


In a nutshell

– News about Alexis Sanchez.

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