The tax agency\u0027s battle with the superstars like Jose Bautista could have a chilling effect on Canadian teams’ ability to attract top talent
Although the facts differ in their battles with the CRA, they share a common issue that experts say could have a chilling effect on Canadian sports teams’ ability to attract top international athletes: How non-resident high earners can protect their income and mitigate Canada’s high taxes.
When an RCA holder retires or loses their job, the pension account will begin paying out at which point the money will be taxed, presumably when they are in a lower tax bracket. The CRA will also refund the 50 per cent portion of all contributions that it withheld. Jose Bautista celebrates with Josh Donaldson after his home run against the Texas Rangers in game five of the ALDS in Toronto, October 2015.The tax agency says Bautista’s pension simply isn’t an RCA, and thus his $16 million in deductions are invalid. In court documents, the CRA argued the law “does not permit the claimed RCA deductions,” and that Bautista’s RCA is “not a ‘pension plan’ or a ‘retirement compensation arrangement’” as defined by the Income Tax Act.
Bautista’s lawyers said that the $13.3 million payment in 2017 was to “assist with this transition into retirement” and that his RCA “exhibits all of the hallmarks of a pension plan.” It would be less enticing for any kind of talent to work in Canada if they’re not permitted to provide for retirement from the portion of their time working hereExperts agree that RCAs are an important tool for Canadian organizations to attract top international talent. Canada’s high tax rates for top earners can be a significant deterrent when compared with the United States, for example, where federal tax rates range from 10 to 37 per cent at the highest end.
Toronto Blue Jays catcher Russell Martin during the St. Louis Cardinals MLB pre-season game in Montreal, on Monday, March 26, 2018.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Hosing Bautista: Why the CRA is going after former Blue Jays for millions in taxesThe tax agency\u0027s battle with the superstars like Jose Bautista could have a chilling effect on Canadian teams’ ability to attract top talent
Lire la suite »
Hosing Bautista: Why the CRA is going after former Blue Jays for millions in taxesThe tax agency\u0027s battle with the superstars like Jose Bautista could have a chilling effect on Canadian teams’ ability to attract top talent
Lire la suite »
B.C. handyman wins CRA review after being denied CERBBishop worked as a self-employed contractor for a single Vernon client doing renovations over the span of six months.
Lire la suite »
CRA denies taxpayers' COVID-19 benefits claim for their Airbnb housekeeping chargesThe CRA determined a couple with Airbnb rentals wasn\u0027t eligible for CRB, and a judge ruled the decision wasn\u0027t \u0022unreasonable.\u0022 Read on.
Lire la suite »
CRA denies taxpayers' COVID-19 benefits claim for their Airbnb housekeeping chargesThe CRA determined a couple with Airbnb rentals wasn\u0027t eligible for CRB, and a judge ruled the decision wasn\u0027t \u0022unreasonable.\u0022 Read on.
Lire la suite »
Why Is the Fashion Industry Going Through So Much Change?Shocking resignations. Reverse cancel culture. Celebrities becoming designers. Change in the fashion industry seems everywhere right now. Why?
Lire la suite »