LEAFS NOTES: Patrick Marleau, Jake Muzzin join John Tavares in CRA tax appeal

Two former Maple Leafs join fight against tax rates on signing bonuses

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Published Jan 09, 2025  •  4 minute read

John Tavares (left) and Patrick Marleau (R) talk during at Toronto Maple Leafs practice in 2018. Craig RobertsonToronto Sun

A long National Hockey League career can be taxing, but not to the degree a few present and former Maple Leafs argue they’re experiencing.

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Postmedia reported Thursday that retired forward Patrick Marleau and defenceman Jake Muzzin have joined current Leaf John Tavares in separate appeals of the Canadian Revenue Agency’s ruling on their signing bonuses.

Marleau and Muzzin have filed in the Tax Court of Canada in recent months against re-assessments in 2023 that claimed their bonuses should have been taxed in the highest bracket of 50%, not the 15% they’ve paid.

For Marleau, that translates to $3.8 million in federal and provincial tax on signing bonuses paid in 2017 and ‘18, plus $180,000 in interest. Muzzin was assessed $3.7 million and interest of $131,000.

A year ago, Tavares appealed $8 million in taxes and interest on his seven-year, $77-million US deal. All three players point to provisions in a Canada-U.S. tax treaty that establishes 15% for an “inducement to sign” agreement.

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Marleau is contending that 10 teams, including many in the U.S., sought his services and that to gain advantage, the Leafs fashioned an offer for $4.25 million covering three seasons and a $14.5-million bonus, paid twice a year.

Marleau’s appeal notes 15% was withheld by the club and he declared the bonus on his U.S. tax return.

“(The) signing bonus is not salary, wages or other renumeration,” his appeal read.

But in 2019, the CRA informed him it didn’t think he qualified at 15%. In ‘23, part of its re-assessment was his contract stipulated he’d have to pay the money back should he not fulfill the club’s terms, thus it rated as renumeration.

In 2020, Muzzin received $12.7 million on his new deal, $10 million in bonuses, though injuries forced him to retire early in the 2022-23 season.

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Mark Feigenbaum, one of Marleau’s lawyers at KPMG Law, told Postmedia in an e-mail that a decision in Tavares’s case could clarify the situation.

“Hopefully the court will resolve this controversy.”

BERUBE FLIPS FORWARDS

Craig Berube is a man of his word at getting cold Leafs back in the lineup, even if the team is on a five-game heater.

While bottom six forward Pontus Holmberg was not really missed since Dec. 28, the team’s last defeat ahead of playing in Carolina on Thursday, the morning skate pointed to him drawing back in against the Hurricanes.

Holmberg was on the fourth-line right side with Connor Dewar and centre David Kampf, while Ryan Reaves looked set to be scratched after Tuesday’s 3-2 win in Philadelphia, which had been his first appearance after sitting two straight.

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Nick Robertson was slated to be back Thursday after being rested agaisnt the Flyers, playing the left side on a new line with Max Domi and Bobby McMann, as 35-year-old Max Pacioretty took his first breather in 16 games of what has been a busy schedule.

CLOSE QUARTERS

Though the Leafs remain on top in the Atlantic Division, the Washington Capitals pulled ahead for the Eastern Conference lead while the Leafs were off on Wednesday.

The Caps’ 2-1 overtime win over Vancouver — which plays the Leafs at Scotiabank Arena on Saturday — and brought them up to 58 points, two more than the Leafs. Florida also won to stay within four points of Toronto in the division.

Highlighting how close the standings were before Thursday’s games, nhl.com noted 16 teams in the East either hold a playoff spot or sit within seven points of one. In addition, every day this week up to Thursday morning ended with a different team in the second wild-card spot in the East, flipping among Columbus, Montreal, Pittsburgh and Ottawa.

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RESPECT THE BEARD

For Auston Matthews, it was fitting he brang along former teammate Joe Thornton as his chosen guest on this week’s Leafs ‘mentors’ trip.

“I feel like he’s not just my mentor, he’s everybody’s mentor here,” Matthews told media in Philadelphia, where he contributed two points for his 200th multi-point night in the NHL. “We’re close, we talk all the time. I thought it was a cool opportunity to bring him along, with the relationship he has with me and staff members. It’s a lot of fun.”

Like Matthews, Thornton was a first-overall pick, back in 1997 with Boston. Thornton played the COVID-shortened ‘20-21 season with Matthews, Mitch Marner and the Leafs at age 41.

The long-bearded forward became the oldest Leaf to score a regular-season goal, edging the late Allan Stanley, and after a short stint with Florida, eventually retired in October 2023.

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While most mentors are wearing No. 25 Leafs sweaters to mark this year’s trip, Thornton retained No. 97 from his playing days.

Thursday’s game in Carolina is also the anniversary of Thornton scoring in 1999 for Boston in a 6-3 Toronto home win. It made Jumbo Joe the last active NHLer to score at Maple Leaf Gardens prior to him hanging up the blades.

LOOSE LEAFS

Berube was hardly known as a playmaker in his playing days, his 3,149 penalty minutes far outdistancing his 159 points. But Thursday was noteworthy for him, too. It is 27 years to the day of his career-best three-point night as a Washington Capital in a game versus Philadelphia. Dale Hunter’s assist on Berube’s goal gave the former 1,000 NHL points … Injured goalie Artur Akhtyamov departed Wednesday’s Marlies’ game against Wilkes-Barre/Scranton, needing help to the dressing room with a lower-body injury after allowing three goals on seven shots. Matt Murray finished up the 6-3 loss … The farm team now commences their annual ‘Boat Show’ trip while Coca-Cola Coliseum is flooded with watercraft. This long jaunt is 10 games through Feb. 1, beginning Friday in Syracuse and, for the first time, taking them to California to face Bakersfield, San Jose and San Diego.

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