On February 4, 2022, former Toronto Raptors guard Norman Powell was informed of a trade to the Los Angeles Clippers and a tax assessment from the Canada Revenue Agency (CRA) claiming over $1.2 million in additional income tax on inducements he received from the Raptors. Powell is appealing the CRA’s decision, arguing that his nearly $7 million in signing inducements should be taxed at 15% under a Canada-U.S. tax treaty, rather than at over 50%. The case could influence how Canadian teams use signing bonuses to attract foreign athletes, as it parallels similar disputes involving other professional athletes.
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