"This is why players don't want to play in Canada": Fans react to CRA's response in John Tavares' $15,250,000 dispute case

The Canada Revenue Agency (CRA) is challenging Toronto Maple Leafs captain John Tavares' claim that a USD $15.25 million payment in 2018 was a signing bonus, asserting that it constitutes salary, which will have higher tax rates. Tavares contends the payment should be taxed at the 15 percent rate for signing bonuses under a tax treaty, which could save him $8 million in taxes.

The CRA disputes this, stating, per CityNews:

“The amount of USD $70,890,000 was not paid to [Tavares] as consideration for entering into, or as an inducement to sign, the Contract.” Instead, the CRA argues, “The 2018 Amount was salary, wages or other remuneration received by [Tavares] in the 2018 taxation year when he was a resident of Canada.”

John Tavares maintains that the USD $15 million payment should be treated as a signing bonus, emphasizing that he would still receive it even if injured, dropped from the roster, or had an NHL labor disruption. He also claims to reside in the U.S. then, having recently concluded the season with the New York Islanders.

Fans of John Tavares have taken to X (formerly Twitter) to voice their support amid his ongoing tax dispute. One of the fans commented:

"This is why players don’t want to play in Canada"

A couple of other fans also echoed the same sentiment:

"Jeez I wonder why nobody wants to play in Canada"

"All good players will now leave Canada to go play in the US." one fan pointed out.

Some fans, however, appeared to side with the CRA on the dispute.

"It absolutely is taxable" one fan said.

"If he is getting signing bonus in the last year of his contract, then that’s not a signing bonus." one fan chimed in.

Some fans demanded a change in Canada's taxation policy:

"This is why flat rate tax for ALL types of income is the fairest for everyone" one fan said.

"Sick of taxes...." another fan said.

The CRA, however, counters that Tavares would forfeit the "signing bonus" if he breached his contract, retired, withheld his services, or left the team. They note that Tavares' contract is heavily structured around these so-called signing bonuses, highlighting that in the final season of his seven-year deal, he is set to receive a mere USD $910,000 in salary, with another USD $7 million as a bonus.

Both John Tavares' tax lawyer and the Department of Justice lawyer handling the case declined to comment, as the matter is currently before the court. The Tax Court has yet to schedule a hearing for the dispute.

John Tavares discusses commitment and future with the Maple Leafs

After a disappointing pl͏ayoff exit this season, John Tavares has expressed a strong desire to stay with Toront͏o Maple Leafs long-term:

"I haven't put much thought to it. But I mean, I love playing here. I think it's a remarkable place to play," Tavares remarked, per The Hockey News.

Recalling his decision to join the Leafs six years ago, he said:

"When I committed here six years ago, I saw a tremendous amount of talent and an amazing hockey market and organization that's fully committed to winning and doing whatever. And I still feel that way. So, but I haven't put much thought to it and due time that'll come."

John Tavares' current contract, which carries an $11 ͏million cap hit, r͏uns throug͏h next season. Despite the uncertainty, his dedication to the team ͏and passion for the game remain strong.