Canada covers Laval's $1.1M tax bill tied to ex-mayor's corruption scandal
The federal government will pay a $1.1 million tax bill on behalf of Laval, Quebec. This move follows a long-standing dispute over taxes linked to funds recovered from a former mayor’s corruption scheme. Finance Minister François-Philippe Champagne has now authorised the payment to settle the issue. The tax bill stemmed from the actions of Gilles Vaillancourt, Laval’s former mayor. In 2016, he pleaded guilty to participating in a corruption scheme and was sentenced to six years in prison. As part of his sentence, he was ordered to repay the city over $8 million, including $7 million held in a Swiss bank account.
Earlier this year, Laval Mayor Stéphane Boyer requested federal intervention. He argued that residents should not have to pay taxes on the recovered funds. The government acknowledged the unfairness of the situation and agreed to cover the $1.1 million owed to the Canada Revenue Agency. The decision resolves a dispute that began after Vaillancourt’s conviction. The recovered money was subject to taxation, placing an unexpected burden on the city. With the federal payment, Laval will no longer face this financial strain.
The settlement ensures Laval avoids an additional tax burden from the recovered corruption funds. Residents will no longer be responsible for the $1.1 million bill, which the federal government has now taken on. The move closes a chapter tied to the city’s past financial mismanagement.
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