Tax Planning for Professional Athletes and Entertainers
Athletes and entertainers have unique tax issues that require specialized consideration.
We are very experienced in analyzing the tax affairs of athletes and entertainers who come to Canada to work, perform, or participate in an event. We can sometimes structure creative and effective tax-planning arrangements to reduce Canadian tax substantially. We can also attend to tax filings, including a waiver or reduction in tax withholding, and claiming tax refunds.
People who work in Canada in support of entertainers (such as directors, producers, camera operators, make-up artists, and so on) are often not taxable in Canada if they are resident in a treaty country. We can obtain a full refund of any withholding tax deducted in such cases.
Actors involved in Canadian films may elect to pay a flat 23 percent tax on gross receipts and benefits instead of paying regular income tax. This simplifies tax filings and may reduce the overall tax rate.
It may also be possible to reduce Canadian tax by structuring a retirement plan or carrying on the activity through a foreign corporation.
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