In debt of $2.2 million, Olivier Primeau’s famous Beach Club has filed a proposal to reach an agreement with the governments regarding its unpaid taxes.
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The former operator of the entertainment site located in Pointe-Calumet, which declared itself insolvent in February, filed a proposal in early August with its creditors in which it announced, in particular, its intention to pay the Crown’s claims “according to future agreements,” according to the documents consulted.
A meeting of creditors is announced for August 25, but there will be a postponement in mid-September, George P. Tzicas, the trustee on file, told us on the phone.
According to a trustee’s report, 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 explained in the trustee’s report.
“It’s 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 the others gave the money directly to the artist instead of withholding the money and then putting it to Revenue Canada which anyway gave it back to the artist in the country where he stays,” explained Mr. Tzicas.
“It’s an accounting error honestly then we are in the process of settling it,” 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 pay.
“As soon as there is a contribution, the collection begins. So by putting himself under protection [de la loi]the perception stops and then they have time to talk with the oppositions,” he explained.
The trustee said he was very confident of reaching an agreement with the tax authorities. Discussions would currently focus on interest and penalties, he said.
not the end
Despite this insolvency procedure, it is far from being the end of the Beach Club, Olivier Primeau assured us.
The latter told us that the Beach Club had an excellent summer of 2022 and that the other activities of his group were also successful. He indicated that the insolvent company was no longer the operator of the Beach Club due to a restructuring of its group.