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Published 7 days ago • loading... • Updated 7 days ago
Ottawa to pay tax bill imposed on Laval, Que., after corrupt ex-mayor’s fraud
Finance Minister François-Philippe Champagne authorized an ex gratia payment after Laval contested the tax demand tied to Gilles Vaillancourt’s corruption case.
Federal Finance Minister Philippe Champagne announced Thursday the federal government will cover a $1.1 million tax bill for Laval, settling an obligation owed to the Canada Revenue Agency following corruption allegations against former mayor Gilles Vaillancourt.
Vaillancourt pleaded guilty in 2016 to conspiracy and fraud after a corruption scheme regarding public contracts; he returned roughly $8 million to the city, but the Canada Revenue Agency subsequently sought 14 per cent tax on $7 million of those funds.
Laval Mayor Boyer contested the tax demand in March, arguing it was unjust to force residents to pay for the actions of the former mayor, and formally requested federal intervention to resolve the lingering financial burden.
Champagne authorized the payment "in the interest of fairness" and in keeping with how the Quebec government previously handled the matter, sparing Laval residents from paying the bill which Boyer called "an important victory" for the community.
By assuming the cost, the government clears the remaining tax obligation tied to the recovered funds, finally closing a chapter on the corruption scandal that led to Vaillancourt's six-year prison sentence.