John Tavares on the verge of losing over $8M for criminal actions
This afternoon a new report has confirmed that John Tavares has officially learned his fate regarding an appeal made to the Canadian Revenue Agency (CRA) over his contract.
The Toronto Maple Leafs and John Tavares signed a contract with one another back in 2018. As part of the contract John Tavares received $15.25 million USD in bonus money. This bonus money according to John Tavares was supposed to be taxed at a lower rate than his base income.
The CRA argued that John Tavares did not qualify for the lower tax rate on this money. This would mean that John Tavares would owe $8 million more dollars in taxes from his contract. Today the CRA determined that the 15.25 million was indeed not a traditional bonus and therefore John Tavares must pay the higher tax rate.
"The CRA «denies that any amount referred to as a ‘signing bonus' was a signing bonus or an inducement payment,» the government said in a response to Tavares' tax appeal, filed last week in the Tax Court of Canada.
It adds, «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.»
«The 2018 Amount was salary, wages or other remuneration received by [Tavares] in the 2018 taxation year when he was a resident of Canada,» the response to the appeal says. «Accordingly, the entire 2018 Amount is to be included in [his] income.»"
It adds, «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.»
«The 2018 Amount was salary, wages or other remuneration received by [Tavares] in the 2018 taxation year when he was a resident of Canada,» the response to the appeal says. «Accordingly, the entire 2018 Amount is to be included in [his] income.»"
Now it seems as though John Tavares will have to fight a legal battle to avoid paying the 8 million dollars that the CRA is looking to receive. As of now, John Tavares or his representatives have not commented on the situation.
Source: Hockey Patrol - Major update in Maple Leafs captain John Tavares' $15M dollar legal battle
| POLL | ||
MAI 29 | 111 ANSWERS John Tavares on the verge of losing over $8M for criminal actions Will John Tavares end up having to pay the extra taxes from his bonus money? | ||
| Yes | 79 | 71.2 % |
| No | 32 | 28.8 % |
| LIST OF POLLS | ||
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