Two Former Toronto Maple Leafs Stars Sued by the Canada Revenue Agency
Patrick Marleau and Jake Muzzin are being pursued by the Canada Revenue Agency over alleged unpaid taxes stemming from Toronto Maple Leafs signing bonuses.
John Tavares was paid a hefty signing bonus when he first got his deal with the Toronto Maple Leafs, and it has led to a lengthy battle with the CRA.
Now, the Canada Revenue Agency is going after Patrick Marleau and Jake Muzzin for very similar reasons.
Patrick Marleau and Jake Muzzin vs. the CRA
According to a report from the National Post, there has been a ton of confusion surrounding the signing bonuses and whether or not they are taxable.
The issue is that the CRA has poked holes in the wording of these contracts, claiming that since the bonuses are relative to certain milestones, they aren't true bonuses. Therefore, they are taxable.
Muzzin - a former defenceman who joined the Leafs' front office after a career-ending injury in 2022 - said in his appeal that CRA is claiming over $3.7 million in federal taxes and $131,000 in interest for the 2020 tax year."
However, as reporter David Alter states, NHL teams, especially Canadian ones, have since amended the language so players do not get caught.
Unfortunately, Tavares, Muzzin, and Marleau are still being told that they are on the hook for millions of dollars.
This is certainly one of the drawbacks to playing in Canada and it is why a lot of players over the years have avoided Canadian teams.
Thankfully, teams are now protecting the players but for some guys, it is simply too little too late.
Hopefully, this issue can all be resolved and everyone comes away feeling happy about how it all went down.
