Ottawa Covers Gilles Vaillancourt Tax Bill With 1.1 Million
Ottawa will send the City of Laval a $1.1 million payment to cover unpaid taxes tied to gilles vaillancourt, after the federal government said the money would correct a situation it described as unjust for Laval residents. François-Philippe Champagne said the cabinet would authorize the payment Thursday.
The minister’s office said the payment will be made because the city was expected to pay about 14% in tax on $7 million stolen by Vaillancourt. The recovered money was hidden in a Swiss bank account, returned to Laval in 2016, and now sits in the Fonds Place-du-Souvenir.
Champagne and Boyer
Champagne said the payment would be authorized “autorisera dans un souci d’équité […] le versement d’un paiement à titre gracieux de 1,1 million de dollars afin de corriger une situation injuste vécue par les citoyens de Laval” and that it “sera fait en reconnaissance d’un paiement devant être effectué par la Ville de Laval à l’Agence du revenu du Canada (ARC)”.
Stéphane Boyer called the federal decision a “victoire importante” and said it would come “sans coût pour les contribuables.” In a written statement, he said: “Les Lavallois ont déjà payé un lourd prix pour les actes criminels commis par M. Vaillancourt et nous pourrons donc finalement tourner la page sur cette histoire injuste. Je tiens à remercier le ministre François-Philippe Champagne pour sa collaboration dans le dossier”.
Laval Tax Dispute
The dispute followed a requirement from the Canada Revenue Agency that Laval pay the tax amount starting in March 2024. The city had already received 1.8 million dollars by decree from the Quebec government in 2016 to reimburse taxes owed by Vaillancourt, after Carlos Leitão described that step as “une question d’équité envers les citoyens […] qui ont été les principales victimes”.
Vaillancourt, who was mayor of Laval from 1996 to 2010, pleaded guilty in 2016 to fraud, breach of trust and conspiracy. The repatriated money now helps finance organizations that assist young people from disadvantaged backgrounds, and Laval distributes about 600,000 dollars a year from the Fonds Place-du-Souvenir.
Fonds Place-du-Souvenir
The federal payment resolves the immediate bill Laval faced, but it also leaves the recovered funds in the city’s youth fund untouched. Boyer’s statement tied the decision to taxpayers, while the government framed it as a reimbursement for a tax charge linked to stolen money already returned to the city.
For Laval, the practical outcome is straightforward: Ottawa has agreed to cover the tax bill tied to the Vaillancourt case, and the city does not have to absorb the $1.1 million cost itself.
