CRA to Force Quebec Municipalities to Reveal All Payments to Contractors and Consultants

The Canada Revenue Agency will be going to Federal Court on Monday requesting an order to force municipalities in Quebec to reveal all payments they made to contractors and consultants in the past four years.

The CRA will look at contracts awared by cities, towns, and villages including Quebec City, Laval, Longueuil, and Sherbrooke. Last year, the agency did a similar review in Montreal.

Pierre Tremblay, professor of political science at Université du Québec à Montréal, said that the scandal involving Quebec's contruction industry and the relative high cost of Quebec public works justify an examination of sums paid to contractors. Tremblay explained that the price of municipal construction can be anywhere between 25-30% higher than the other provinces.

The CRA will also look for undisclosed contractor income by comparing all municipal payments with revenues declared on contractors' tax returns. According to CRA spokesperson Kareen Dionne, this action will be a part of their "continued effort against the underground economy."

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