Silver: NBA Will Look At Eliminating Divisions NBA Attendance Up Slightly Through Dec. 8 NBA Kings Shopping Arena Naming Rights NBA Mexico City Game Cancelled Pistons Seeing Jump In Ticket Sales Dolan Vs. Prokhorov Hurting Teams? Bryant, Wade Unveil Latest Sneaker Offerings NBA Game In Mexico Part Of Int'l Push Adidas Could Recoup Part Of Rose Deal Grooming Products Hot In NBA
NBA PLAYERS NOT GIVING THANKS FOR NEW CANADIAN TAX LAWS
Published November 26, 1997
U.S. citizens playing for the Raptors and Grizzlies have seen an increase in their income taxes, according to Bill Harris of the TORONTO SUN. Raptors GM Glen Grunwald: "We believe it equates to a 1%-2% increase. It's not insignificant amount when you consider what these guys make." U.S. athletes playing for the Raptors and Grizzlies are taxed by both Canada and the U.S., based on their "source income" in each country. In general, Canadian tax rates "are slightly higher" than the U.S. When the NBA teams began play in '95, "team accountants were advised by Revenue Canada to calculate 'Canadian source income' based on games played," which worked out to about a 51-49 split between Canadian income. But the teams have since been told by Revenue Canada that Canadian income should be calculated by "duty days," or the total number of days players spend in Canada during the season. This "means about 68% of a player's income is being taxed at the Canadian rate, with only 32% at the U.S. rate." Revenue Canada spokesperson Michel Cleroux: "The IRS does it exactly the same way with Canadians playing in the U.S." NBPA Exec Dir Billy Hunter: "This matter could have dramatic consequences on our players' livelihoods" (Bill Harris, TORONTO SUN, 11/26).