Transcript
Question:
Why is there a question about my residence? Is that not just about
where I live?
Answer
No, it's not that simple. Like most athletes today, you'll
be competing across North America and maybe around the world.
Figuring out an athlete's residency might seem simple but
it's not, and we need to look at each case individually. This
is important, because your country of residence is what governs
your global tax liability, and if it's not planned properly
there can be significant tax consequences to you. And you need to
address this shortly after you sign a contract with a new team
– not in April when it could be too late for proper planning
and teams are busy with playoffs and new seasons. Besides, your
residency can also affect plans for your signing bonus.
Question:
But isn't it just a matter of paying taxes wherever I
live?
Answer:
No. You'll have income tax obligations to different countries,
provinces, states, or even cities, depending on where you compete.
Nobody likes to pay tax anywhere of course, but it's important
that when you do pay tax, you only pay it to one place.
Question:
So I really do need professional advice?
Answer:
Yes. Your needs as a professional athlete are unique to you, so
it's important that you work with a professional who has the
experience to satisfy those needs. Canada has tax treaties with
many countries throughout the world, and at Crowe Soberman we have
experience in dealing with them all. Over 100 athletes and coaches
are our clients, and as well as the athletes themselves, we work
with a wide range of contacts such as investment advisors, team
personnel, agents, business advisors, bankers, and governmental
agencies. So we can guide you through the entire process, keeping
it as simple as possible for you — so that you can
concentrate on your game.
Originally published on 10 Jul 2013
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
