The federal authorities has agreed to pay $1.1 million to settle a Canada Income Company tax invoice imposed on a Montreal suburb for funds the town recovered from a corrupt ex-mayor.
A spokesperson for Finance Minister François-Philippe Champagne says he’ll authorize the fee to the Income Division on behalf of Laval, Que., north of Montreal.
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The tax invoice stems from the actions of former Laval mayor Gilles Vaillancourt, who pleaded responsible in 2016 to collaborating in a years-long collusion and corruption scheme surrounding the awarding of public contracts.
He was sentenced to 6 years in jail and ordered to repay the town greater than $8 million, together with $7 million that was held in a Swiss checking account.
Laval Mayor Stéphane Boyer formally requested Ottawa in March to intervene in order that the town’s residents wouldn’t be caught paying taxes on cash it recovered from Vaillancourt.
Champagne’s press secretary, John Fragos, says the federal government acknowledges that the tax state of affairs was unfair to Laval and its residents, and is performing to rectify it.
© 2026 The Canadian Press