The Beach Club owes $2.2M in unpaid taxes

The Beach Club owes $2.2M in unpaid taxes< /p> UPDATE DAY

In debt of $2.2 million, Olivier Primeau's famous Beach Club has submitted a proposal to reach an agreement with the governments regarding its unpaid taxes.

The former operator of the entertainment site located in Pointe-Calumet, which declared itself insolvent in February, filed a proposal to its creditors in early August in which it announced its intention to pay the claims of the Crown “according to future agreements”, according to documents consulted.

A meeting of creditors has been announced for August 25, but there will be a postponement to mid-September, George P. Tzicas, the trustee of record, told us over the phone.

According to a report from the trustee, the Beach Club currently owes $1.3 million to Revenue Canada and $900,000 to the Quebec Revenue Agency.

” The financial difficulties encountered by the debtor are mainly explained by the assessments issued against it by the government “, is it explained in the report of the trustee.

” It is a problem with the tax levied on artists' fees. We are still in there, ”explained Olivier Primeau, reached by telephone. He told us that he was not aware of all the details of the procedure.

Accounting error

“You invite a DJ, he charges $300,000, then they gave the money directly to the artist instead of withholding the money and then putting it to Revenue Canada who gave it back anyway to the artist in the country where he stays,” Mr. Tzicas explained.

“It's an accounting error honestly and then we're sorting it out,” he adds.

According to the latter, the Beach Club placed itself under the protection of the courts in February to avoid having to pay immediately amounts which it considered not to have to pour.

“As soon as there is a contribution, the collection begins. So by putting themselves under the protection [of the law], the collection stops and then they have time to talk to the opposition parties,” he explained. said very confident of reaching an agreement with the tax authorities. Discussions are currently focused on interest and penalties, he said.

Not the end

Despite this insolvency procedure, it is far from be the end of the Beach Club, assured us Olivier Primeau.

The latter told us that the Beach Club had had an excellent summer 2022 and that the other activities of his group were also successful. He indicated that the insolvent company is no longer the operator of the Beach Club due to a restructuring of its group. 

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