Olivier Primeau’s famed beach club, which owes $2.2 million in debt, has submitted a proposal to seek a deal with governments over its unpaid taxes.
• Also read: Beach club: $1.8 million showdown with IRS
The former operator of the amusement park at Pointe-Calumet, which declared itself insolvent in February, had filed with its creditors in early August, notably announcing its intention to settle the Crown’s claims “subject to future agreements”. , according to the documents consulted.
A creditors’ meeting has been announced for August 25, but there will be a postponement in mid-September, the trustee on record, George P. Tzicas, told us on the phone.
The beach club currently owes $1.3 million to Revenue Canada and $900,000 to the Quebec Revenue Agency, according to a trustee report.
“The debtor’s financial difficulties are mainly due to the rulings issued against him by the government,” the trustee’s report said.
“It’s a problem with the tax that’s levied on artists’ royalties. We’re still in,” explained Olivier Primeau, available by phone. He told us that he did not know all the details of the procedure.
“They bring in a DJ, he asks $300,000, then they gave the money directly to the artist instead of withholding the money and then wire it to Revenue Canada, who gave it back to the artist in the country he’s in anyway stops,” explained Mr.Zicas.
“Honestly, it’s an accounting error, then we’re in the process of fixing it,” he adds.
According to the latter, in February, the Beach Club placed itself under the protection of the courts to avoid having to immediately pay amounts it considered unpayable.
“As soon as there is a contribution, the collection begins. So by putting himself under protection [de la loi]the perception stops, then they have time to talk to the opposition,” he explained.
The trustee said he was very confident of reaching an agreement with the tax authorities. Discussions are currently focused on interest and penalties, he said.
not the end
Despite these bankruptcy proceedings, the beach club is far from over, Olivier Primeau assured us.
The latter told us that the Beach Club had an excellent summer 2022 and that the other activities of his group were also successful. He pointed out that the bankrupt company was no longer the operator of the beach club due to a restructuring of its group.