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

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.

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