Laval: Ottawa to Review $1M Tax Bill for Ex-Mayor Vaillancourt

The city of Laval, Quebec may avoid issuing a $1 million check to its former mayor, Gilles Vaillancourt, who was convicted of fraud. Following public criticism, the federal government announced Monday it is convening the Canada Revenue Agency (ARC) to “find a solution.”

Canada’s Finance Minister François-Philippe Champagne stated during question period in the House of Commons that he had contacted Laval Mayor Stéphane Boyer and summoned the commissioner of the ARC.

We are working hand in hand to find a solution that will be in the interest of the people of Laval […] We are in solution mode.

Until recently, both the Minister and the ARC had resisted making any exceptions. Ottawa maintained that former mayor Gilles Vaillancourt was liable for $1 million in taxes on $7 million he had illicitly obtained from the city of Laval.

After the funds were returned to Laval in 2016, the ARC demanded the city cover the tax obligation.

A Complex Issue

In 2016, the Quebec provincial government had remitted the tax revenue collected to Laval residents. Mayor Boyer had requested the federal government follow suit.

Carlos Leitao, who served as Quebec’s finance minister at the time, now sits as a federal Liberal Member of Parliament, on the same political team as François-Philippe Champagne.

During Monday’s session in the House of Commons, Conservative lawmakers questioned whether Minister Champagne had consulted with Leitao. “He made the decision in 2016, not after a Radio-Canada report,” stated Conservative MP Gérard Deltell.

Champagne did not directly answer the question, but affirmed that the issue is complex. All income is taxable, even when derived from criminal activity.

Ouvrir en mode plein écran

Gilles Vaillancourt served as mayor of Laval from 1989 to 2012. He pleaded guilty in 2016 to charges of conspiracy, breach of trust, and fraud. $7 million in stolen funds had been held in Swiss bank accounts.

These funds were repatriated and returned to the city of Laval in 2016.

Vaillancourt’s legal team is now requesting Laval issue the payment so he can satisfy the tax obligation.

Motion to Summon Minister and ARC

Conservative Gérard Deltell also introduced a motion to the Standing Committee on Public Accounts on Monday, requesting that Minister Champagne, representatives from the Canada Revenue Agency, and Mayor Stéphane Boyer appear before the committee. The motion is still subject to a vote.

The revelations from Radio-Canada have prompted a range of reactions from political figures.

In Quebec City, Christopher Skeete, the Minister responsible for the Laval region and Member of the National Assembly for Sainte-Rose, stated on X that he supported Mayor Boyer’s request for an exception.

The people of Laval do not deserve to be stolen from a second time, wrote Bloc Québécois MP Jean-Denis Garon, also on X.