Chris Tanev’s Decision to Join the Maple Leafs Influenced by Taxes…
NHL players often prefer playing in the U.S. due to lower taxes compared to Canada. This makes it challenging for Canadian teams to attract and retain top talent.
However, in a rare case, Chris Tanev chose to return to Canada and sign with the Toronto Maple Leafs due in part to tax benefits.
Tanev was facing a significant “deemed dispositions” tax if he had left Canada permanently. This tax is imposed on the value of assets when a person leaves the country. By returning to Canada, Tanev could avoid this substantial tax burden.
While taxes played a role, Tanev also emphasized the importance of family and joining a winning team in his decision to sign with the Maple Leafs.
However, his unique circumstances of being a long-time Canadian resident with no strong ties to the U.S. made this tax situation unusual in the NHL.
Despite Tanev’s case, the overall tax disadvantage for Canadian teams remains a challenge in attracting players.
