As the 2016 Olympic Games in Rio de Janeiro, Brazil draw to a close, Canadians from coast to coast are celebrating the accomplishments of our Canadian Olympic athletes.

But the most successful athletes can expect more than just applause and pats on the back.  The Canadian Olympic Committee’s Athlete Excellence Fund provides prize money as an extra reward (or incentive) for those who make it onto the podium.

Gold medallists receive a $20,000 prize, silver medallists $15,000 and bronze medallists $10,000.

Unfortunately, the Canada Revenue Agency will take a big chunk of those winnings right off the top.

The actual amount of tax paid will vary depending on an athlete’s total income and province of residence, but we calculated the tax burden for a medal winner who lives in Ontario and earns an annual income of $50,000 per year:

                                    Tax Payable                              

Gold ($20,000)              $5,930

Silver ($15,000)             $4,447 

Bronze ($10,000)           $2,965 

As you can see, nearly a third of the prize money is clawed back in taxes.  Doesn’t that seem like an odd way to reward Canadian athletes for their achievements?