John Tavares' Battle with the CRA Just Took a Wild Turn and the Implications are Massive
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Toronto Maple Leafs forward John Tavares has been battling the CRA over his 2018 signing bonus, and recently, there was a huge development in his ongoing case.
When John Tavares signed with the Toronto Maple Leafs in 2018, he was given a massive signing bonus. However, it started a war with the Canada Revenue Agency.
The CRA claims Tavares' signing bonus was extra income. However, the Toronto Maple Leafs and Tavares' accountants claim that the bonus was a signing incentive.
Incentives cannot be taxed; however, a bonus can be. Tavares reportedly owes the CRA millions, and now, he is going up against them in court.
John Tavares vs. the CRA
According to David Alter of The Hockey News, there is a new development in Tavares' battle with the CRA. Essentially, the forward's lawyers are questioning the Canada Revenue Agency and are even accusing it of acting in bad faith.
In the recent hearing, Tavares' lawyers challenged the CRA's refusal to provide answers and documents related to three key areas.
These included files from the CRA auditor and audit team leader, communications with other CRA departments involved in the reassessment, and information about the tax treatment of other American NHL players who received similar bonuses.
These included files from the CRA auditor and audit team leader, communications with other CRA departments involved in the reassessment, and information about the tax treatment of other American NHL players who received similar bonuses.
As it stands, the CRA is not being fully transparent about its audit into Tavares' finances. The judge is ruling Tavares' favor, and now, the CRA must be more transparent, otherwise, they are at risk of losing the case.
Judge Yuan rejected many of the CRA's objections, which had included claims that the requests invaded the internal "mental process" of CRA officials or breached taxpayer confidentiality.
Instead, the court found that several questions were relevant to assessing whether Tavares was treated fairly and whether the CRA's conclusions were consistent with past cases.
The judge placed limits on some disclosures, particularly where third-party confidentiality could be compromised, but ultimately ruled that key aspects of the CRA's audit files must be shared with the appellant.
Instead, the court found that several questions were relevant to assessing whether Tavares was treated fairly and whether the CRA's conclusions were consistent with past cases.
The judge placed limits on some disclosures, particularly where third-party confidentiality could be compromised, but ultimately ruled that key aspects of the CRA's audit files must be shared with the appellant.
This is huge news for John Tavares' contract negotiations with the Toronto Maple Leafs. Of course, the Leafs want to bring him back, but if the tax situation is a hassle, Tavares may run.
On July 1st, the forward will officially become a free agent. Whether or not he signs with the Leafs remains to be seen.
Hopefully, this battle with the CRA concludes soon so he doesn't have to have this on the back of his mind as his career begins its final phase.
| POLL | ||
JUIN 15 | 299 ANSWERS John Tavares' Battle with the CRA Just Took a Wild Turn and the Implications are Massive Do you believe the CRA situation will impact John Tavares' decision to stay in Toronto? | ||
| YES | 127 | 42.5 % |
| NO | 172 | 57.5 % |
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