Leafs Chris Tanev shares unknown tax he faced during free agency
During a media scrum last month, newly signed Leafs Chris Tanev disclosed a hidden tax that helped him make his decision to sign in Toronto.
This tax is known as the Departure Tax which is put on a player after a certain amount of time after leaving Canada and his assets still in the country. Tanev was in America with the Dallas Stars for a very short period and if he were to sign a long-term deal with the Stars or other American teams, he would have been subjected to this tax which was avoided by coming home.
"You do have the lower state tax there, but I've played in Canada for 14 years. I'm from here and my wife's family is from close to here. There's also a tax when you leave Canada to become a US citizen there's a departure tax to leave Canada,"
Staying in America would have been quite costly for Tanev as the capital gains he would have faced would have been staggering.
The stories of tax advantages by certain teams has been flooding many NHL cities and the news cycle. Several states including Texas, Washington State, Florida, Nevada and others either have no state income tax or a very low state income tax which gives teams advantages to signing free agents over others.
Over the last several years, those teams have been winning the Stanley Cup which seems more than a mere coincidence.
The Maple Leafs signed Tanev for a six-year deal worth $27 million which seems astronomical considering his age at 34 years old.
Source : The Hockey News
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Have you ever heard of the Departure tax Canadian hockey players face? | ||
| Yes | 22 | 20.4 % |
| No | 86 | 79.6 % |
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