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TWO FORMER LEAFS ACCUSED OF USING 'SHAM' TO AVOID PAYING TAXES ON SALARIES

Shayne Corson and Darcy Tucker aren't just former teammates with the Toronto Maple Leafs, they are brothers-in-law, as Tucker is married to Corson's sister. They are also both accused by the Canada Revenue Agency of using what it calls a "sham" to avoid paying taxes on part of their NHL salaries.

A report by The Star states Tucker and Corson are among 150 Canadians involved in a so called "foreign exchange (forex) market tax scheme." Both invested money in foreign currency trading, piling up million of dollars in losses. The CRA alleges that was part of the plan.

“These trades did not actually occur,” government lawyers allege in an ongoing court battle with Corson. Instead, it was an elaborate “tax loss creation scheme that used the appearance of such trading to generate a tax deferral and permanent tax savings.” Both Tucker and Corson denied the allegations in court documents, stating the investments were 100 percent legitimate. Neither would provide any comments for The Star's article.



The alleged scheme is fairly complicated, but essentially involves taking losses in the early years and gains later. The losses are offset by the gains, but the timing of the losses allows for millions less in taxes to be paid.

"We view these types of transactions as offensive,” Ted Gallivan, assistant commissioner of the CRA’s compliance branch, said in a statement. “It is effectively wealthy taxpayers creating artificial losses to reduce the amount of tax payable.”

Tucker has since withdrawn from the appeal of the CRA's reassessment of taxes paid. Corson is still named in the court documents obtained by the Toronto Star. However, an update from February of this year stated "Corson’s representatives are “continuing settlement discussions and will require more time in order to determine whether the case will settle.”

Tucker played for the Leafs from 1999-00 to the 2007-08 season. Corson was there from 2000-01 to 2002-03. No only are they related through marriage, but the two have been noted to be great friends. Tucker has talked extensively about helping Corson deal with panic attacks during his time in Toronto.

Source: The Star
TIM TUCKER
SEPTEMBER 24, 2020  (9H10)