Former Islanders Captain John Tavares In Dispute With Canadian Tax Agency

It's been a tough week for Tavares.

Former New York Islanders captain John Tavares is in a dispute over the taxes on his Toronto Maple Leafs contract. The news was reported by Glen McGregor of Canada’s National Post.

The dispute is over the money Tavares received in signing his seven-year, $77 million contract with Toronto in the summer of 2018.

McGregor states the Canada Revenue Agency incorrectly calculated how much of the $15.3 million signing bonus he owed.

“The signing bonus was consideration for Tavares — a uniquely skilled and sought-after unrestricted free agent — committing to the seven-year Contract with the Toronto Maple Leafs,” Tavares’ lawyers said in the appeal.

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.

The CRA also states Tavares’ calculated income was $17.8 higher than reported and that he owed an additional $6.8 million in taxes and $1.2 million in interest.

McGregor did not provide a timeline for the case to be settled; his report can be found at NationalPost.com.