NEWS

Former Quebec construction boss in tax trouble

12/05/2012 03:16 EST | Updated 02/04/2013 05:12 EST
One of the star witnesses at Quebec’s corruption inquiry is in trouble with the province’s tax agency.

Former construction boss Lino Zambito owes $38,465 in back taxes for the pizzeria he operates in Blainville, north of Laval, according to a release issued by Revenu Québec Wednesday.

On Monday, Revenu Québec agents seized goods from the pizzeria and revoked its licence to collect sales taxes.

According to the agency, a company can't operate unless it has that licence.

Revenu Québec also said it is looking into the possibility of collecting more goods or targeting other people linked to the business in order to recover the money it is owed.

Zambito was the first witness at the commission to outline the entrenched system of corruption in the awarding of municipal contracts in Montreal and Laval.

In an interview with Radio-Canada Wednesday, Zambito said he hasn't been associated with the pizza business since Nov. 1, when he sold his portion to a third party.

Though Zambito said he sold his part of the business, Revenu Québec spokesman Stéphane Dion said the agency is targeting the numbered company, 7244746 Canada Inc., which is still administrated by Zambito according to the province's business registry,

He admitted to owing money to the government, but told Radio-Canada he had already paid between $30,000 and $35,000. He still owes $40,000.

According Zambito, his attempts to come to an agreement with Revenu Québec failed after the agency requested a $103,000 guarantee. Zambito said he refused to pay that sum.

He's due in court next year to answer to charges of collusion, fraud and breach of confidence .

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