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Toronto Maple Leafs captain John Tavares
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Major Scandal Emerges in Toronto: John Tavares is Facing a Multi-Million Dollar Lawsuit

Published February 7, 2024 at 12:24
BY AARON

A significant scandal has just erupted in Toronto involving star forward John Tavares.

According to what has just been reported by Glen McGregor, who works for the National Post, the Maple Leafs captain is involved in a dispute over more than $8 million with the Canada Revenue Agency, following a signing bonus he received in 2018 upon joining the organization.

Tavares is disputing the fact that he owes such a sum, arguing that for the first half of the year 2018, before agreeing to terms with Toronto as a free agent, he was playing in the United States, in New York.

He defends his position by stating that his bonus, according to a Canada-U.S. tax treaty, should be taxed at 15%.


For its part, the Canada Revenue Agency contends that the tax rate should be 38%.

Because he signed a contract primarily based on signing bonuses, which is mostly paid at the beginning of each new season, the Leafs' number 91 received a $15.3 million bonus in 2018.

The $8 million claimed also includes interest for unpaid amounts over the past years.

The collateral effects of this story could be significant



It will be interesting to see how this case concludes, as it could have a huge impact on the future signings of free agents.

Given that Canadian teams are often at a disadvantage in agreeing to terms with players, notably because of the high tax rates, this could further complicate the task for these teams.

This will certainly be a case to follow that could have repercussions for the coming years.


Credit: DLC
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Major Scandal Emerges in Toronto: John Tavares is Facing a Multi-Million Dollar Lawsuit

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