Toronto Maple Leafs Star John Tavares Testifies in Appeal Against $8-Million Tax Bill
The Canada Revenue Agency says the bonus was employment income, while Tavares argues it was an inducement taxed in the United States at 15%.
- On Tuesday, Aug. 18, 2026, Toronto Maple Leafs star centre John Tavares testified in federal tax court regarding an $8 million bill from the Canada Revenue Agency over a $15 million signing bonus.
- The CRA classifies the payment as employment income taxable at over 50 per cent, while Tavares argues it was an "inducement" to sign with Toronto, previously taxed at 15 per cent in the United States.
- During testimony, Tavares recounted 2018 negotiations with then-general manager Kyle Dubas, explaining he sought an $11 million annual average value within the $77 million contract to protect against lockouts and other disruptions.
- A ruling favoring the CRA could deter future athletes from signing with Canadian franchises, as Tavares cautioned that players might choose United States teams instead.
- Judge J. Scott Bodie is presiding over the two-week trial in Toronto to determine whether the bonus qualifies for tax relief as an "inducement" under the Canada-United States Convention With Respect To Taxes.
15 Articles
15 Articles
Wednesday's FTB: Oh goody! Taxes
This ongoing story of John Tavares's first contract with the Maple Leafs and how the salary should be taxed as finally hit tax court. This case had ostensibly come to a close with CRA finding against Tavares, but this appeal is before the Tax Court. Toronto Maple Leafs star John Tavares to appear in court to argue against $8-million tax billCanada Revenue Agency regards $15M signing bonus as income, but Tavares says it was an “inducement” to be …
Toronto Maple Leafs star John Tavares testifies in appeal against $8-million tax bill
Toronto Maple Leafs star forward John Tavares was in a face-off of a different kind Tuesday, taking the stand in a tax court appeal of an $8 million bill from the Canada Revenue Agency over his signing bonus to join the team.
Hockeyer John Tavares claims in a tax court that the bonus he received by signing a contract with the Maple Leafs in 2018 is not a salary.
Canadian NHL teams remain alert while John Tavares is scheduled to appear in court on Tuesday in Toronto.
The Toronto Star
Fighting an $8-million tax bill, Maple Leafs star John Tavares details the negotiations behind his ‘lucrative’ 2018 free-agent deal
The Canada Revenue Agency says the Leafs star owes $6.8 million plus $1.2 million in interest in taxes over his 2018 signing bonus.
Coverage Details
Bias Distribution
- 46% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
