MLSE denies owing a substantial amount of money to the government over unpaid taxes
It's been a bit of a frustrating few months for MLSE with a few of its pro sports teams struggling to find success in their various leagues. The organization also recently had to part ways with Leafs GM Kyle Dubas and negotiate a new deal with new Leafs general manager Brad Treliving. While this was all going on, they were also dealing with a pretty substantial debt dispute over claims of unpaid taxes, dating back to 2019.
Per an official report from CBC News Toronto, MLSE is accused of owing approximately $1.18M in unpaid taxes. Of course, MLSE is disputing the charge, but as of now, they're still viewed as a debtor with the substantial amount of money still outstanding.
The City of Toronto is arguing their position that MLSE should simply pay the taxes and then sort it out and try to recoup the money later if they are found to be not responsible. However, MLSE sees it differently.
"I can't imagine what it would be like for our city's administration if the tax money stopped flowing every time somebody raised a concern or an appeal. That's why people are still expected to remit their taxes, and then the process will unfold in a very organized way and the accounting will be done at the end of that process to straighten it all out. But in the meantime, the taxes still have to be paid to the city." - Coun. Stephen Holyday on the outstanding debt MLSE reportedly owes
The dispute is not over Scotiabank Arena, but rather BMO Field, where the CFL's Toronto Argonauts play. In most cases, organizations who rent city-owned property pay property taxes as a part of their lease agreement. However, MLSE is stating that don't actually rent the property. Instead, they pay a "user fee" as a part of a management agreement, which isn't considered rent.
"The ultimate responsibility for the payment of realty taxes rests with the owner, and MLSE is neither the owner of the property nor a tenant." - MLSE, via an official statement
You can read the full report provided in the link below.
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