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Ottawa to pay tax bill imposed on Laval, Que. after corrupt ex-mayor’s fraud

Click to play video: 'Former Laval mayor Gilles Vaillancourt sentenced'
Former Laval mayor Gilles Vaillancourt sentenced
WATCH: Former Laval mayor Gilles Vaillancourt sentenced – Dec 16, 2016

The federal government has agreed to pay $1.1 million to settle a Canada Revenue Agency tax bill imposed on a Montreal suburb for funds the city recovered from a corrupt ex-mayor.

A spokesperson for Finance Minister François-Philippe Champagne says he will authorize the payment to the Revenue Department on behalf of Laval, Que., north of Montreal.

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The tax bill stems from the actions of former Laval mayor Gilles Vaillancourt, who pleaded guilty in 2016 to participating in a years-long collusion and corruption scheme surrounding the awarding of public contracts.

He was sentenced to six years in prison and ordered to repay the city more than $8 million, including $7 million that was held in a Swiss bank account.

Laval Mayor Stéphane Boyer formally asked Ottawa in March to intervene so that the city’s residents wouldn’t be stuck paying taxes on money it recovered from Vaillancourt.

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Champagne’s press secretary, John Fragos, says the government recognizes that the tax situation was unfair to Laval and its residents, and is acting to rectify it.

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