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Former Blue Jays Win Battle Against Canadian Government

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Dan McPeake
December 11, 2024  (6:06 PM)
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One common perception about the Blue Jays is that their inability to attract mega stars is largely due to Canada's higher income tax rates.

A recent ruling involving a couple of former Jays hopes to change that perception.

Catcher Russell Martin and third baseman Josh Donaldson were victorious in their battle against the government and the Canadian Revenue Agency (CRA).

At the heart of lawsuit was whether or not the CRA could charge more tax on millions of dollars in additional income. According to judge Jean-Marc Gagnon, the answer is an emphatic no.

Gagnon found the government's calculation «faulty», in what has been called a «precedent-setting» decision.

Gagnon found that the taxable incomes of both Donaldson and Martin was far less than what the agency had claimed.

This is not the first time Blue Jays members have involved in financial disputes.

During the pandemic-shortened 2020 season both first base coach Mark Budzinski and former first baseman Rowdy Tellez were accused of not paying rent on their Toronto condos while they were stuck in the U.S. The cases were eventually settled.

In regards to Martin and Donaldson, their taxes were reduced significantly, with Martin's dropping by $4 million and Donaldson paying $2.6 million less.

Martin's case is particularly interesting given that is a Canadian citizen.

The case has implications for both the Blue Jays and other Canadian sports teams such as the Raptors and Leafs.

According to veteran tax lawyer Mark Fiegenbaum, the ruling will bring a sigh of relief to Canadian sports corporations, who often foreign nationals and non-citizens for high paying positions.

Martin and Donaldson were not the first players to catch the ire of the CRA. Back in 2023, the agency went after their former teammate and Blue Jays legend Jose Bautista for millions of dollars.

Martin announced his retirement in 2022 after having not appeared in a game since 2019.

Donaldson retired before the 2024 season.

POLL
DECEMBRE 11   |   169 ANSWERS
Former Blue Jays Win Battle Against Canadian Government

Who was better?

Josh Donaldson10964.5 %
Russell Martin6035.5 %
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