Former New York Islanders captain John Tavares is in a dispute over the taxes on his Toronto Maple Leafs contract. Tavares signed the contract on July 1, 2018, ending his time with the Islanders and moving back home to his boyhood team.
Tavares has been in court over the last couple of days, dealing with the Canadian Revenue Agency over his signing bonus and other features within his contract.
“I would like to be in my cottage today, preparing for the season and spending time with my family,” Tavares told reporters, including Jennifer Pagliaro of The Toronto Star. “But it is what it is. You deal with whatever comes your way. That’s part of life, right?”
The CRA states that he must pay over 38 percent of his bonus, while Tavares claims he should have been taxed at 15 percent due to a treaty between the United States and Canada that sets a lower rate for athletes.
Tavares also argues that were he to get traded, the signing bonus would remain consistent and that the 15 percent rate should remain consistent.
During his day in court, Tavares detailed from the courtroom his free agency experience and how he became a Maple Leaf, giving an inside look at how he landed with Toronto, while ditching Long Island in the process.
According to Tavares, reported in the Toronto Star, he called then-Toronto General Manager Kyle Dubas directly, bypassing his agent, and reportedly told Dubas verbatim, "If you really want me, why can’t we agree on $11 million?"
Dubas then offered seven-year, $77 million contract that brought Tavares home to Toronto, with Tavares giving a simple "Yes" to Dubas on that phone call.
Later in his deposition in court, Tavares stated it wasn't as easy as that phone call made it out to be.
"It was really hard to disconnect from New York,” Tavares said in court and reported by the Toronto Star, “Toronto really stood out with the aggressive nature they had in wanting to sign me and the fit really made a lot of sense.”
Tavares ultimately left after nine seasons with New York, posting 272 goals and 621 points in 669 games with the Islanders.
He's since played 597 games with the Maple Leafs, adding 253 goals and 564 points along the way.
The full report on Tavares' testimony and the full report on his case along with broader implications can be found here:
