• Powered by Roundtable
    David Alter
    David Alter
    Jan 9, 2025, 16:18

    All players are appealing to the Tax Court of Canada over reassessed signing bonuses.

    All players are appealing to the Tax Court of Canada over reassessed signing bonuses.

    A pair of former Toronto Maple Leafs have joined John Tavares in a similar fight over back taxes stemming from signing bonuses.

    According to the National Post, Jake Muzzin and Patrick Marleau have filed separate appeals to the Tax Court of Canada stating that their signing bonuses should only be subject to a tax of 15 percent and not at the top income tax bracket that goes over 50 percent.

    In the report, Marleau is appealing over $3.8 million in combined tax on signing bonuses paid in 2017 and 2018. Muzzin's appealing over $3.7 million in taxes and $131,000 in interest for the 2020 tax year.

    “The signing bonus was consideration for this sought after unrestricted free agent, Marleau — a veteran NHL player who had garnered widespread respect for his skill, versatility, dedication and leadership — committing to the three-year Contract with the Toronto Maple Leafs,” reads his appeal.

    “Marleau’s signing bonus is not salary, wages or other remuneration in respect of an employment.”

    This follows a similar tax appeal to John Tavares that has yet to be resolved. He is fighting the tax agency over $8 million they claim he owes.

    At issue is the the signing bonus money paid out by clubs used by teams as a sweetener to sign and retain players. In Tavares' appeal, CRA responded by saying “if at any time during any League Year, [Tavares] breached the Contract, voluntarily retired, withheld his services (including a refusal to report, practice, or play), or left the Toronto Maple Leafs… the Appellant would only be entitled to retain a pro rata portion of the ‘signing bonus’…”

    The Hockey News has learned that this specific languages has been changed in standard player contracts by some teams to better reflect any interpretation of the language of signing bonuses in an attempt to avoid future appeals. However, it's likely that these three players won't be the last to have their taxes reassessed by the Canadian tax agency.


    Image

    Stay updated with the most interesting Maple Leafs stories, analysis, breaking news and more! Tap the star to add us to your favorites on Google News to never miss a story.