Pierre Karl Pladeau calls report linking Quebecor, tax havens 'big dud'

Parti Qubcois leader Pierre Karl Pladeauis calling a reportsuggesting his company may have been involved in a structure to pay reduced taxes in Quebec a "big dud."

Enqute, Radio-Canada's investigative program, found about 30 companies and branches that seem to have a link with Quebecor which were active in a dozencountries known to be tax havens.

Many of the subsidiarieswereactive whilePladeau was president of the company.

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Pladeau has repeatedly said in the past that under his supervision,Quebecor never had subsidiaries intax havens.

Last Friday, Pladeau responded on his Facebook pageto allegations reported in La Presse on the existence of about tencompanies and subsidiaries created by Quebecor in Switzerland, Luxembourg and Iceland.

He wrotethere was no "exotic financial structure" used by Quebecor while he was president.

Radio-Canada reported Sunday that the alleged network of companies, and the number of countries where those companies are operating,iseven more extensive than cited in last week's report.

The companies linked to or seeming to be linked toQuebecorare based inBarbados, the Cayman Islands, Hong Kong, the British Virgin Islands, Ireland, Panama and Singapore.

The companies have names such as "TCG Videotron Cayman Ltd" and "Quebecor World Foreign Sales Corp".

Several of the companies were created before Pladeau became president. Some of the subsidiaries are closed today, while others still appearto be active.

There is no evidence of tax fraud.

Pladeau refusedRadio-Canada's interview requests.

The PQ leader wrote on his Facebook page Monday morning that the latest report from Radio-Canada was "a big dud."

Pladeau addresses allegations

Later Monday morning, in an interview with Montreal radio station 98.5 FM,Pladeausaid that henever createdsubsidiariesin tax havens, however,he admitted that Quebecorhad acquired companies that hadexistingsubsidiariesin tax havens.

Pladeau was asked if Quebecorthen used those subsidiaries in tax havens to avoid paying taxes in Quebec.

"I can't answer thatbecause it wasn't me that worked on those structures. I have no personal knowledge of it,but I gave instructions not to use those structures"Pladeau replied.

Pladeau was then asked if he had documents or memos showing that he had given those instructions.

"I was CEO for 15 years.I don't have those with me this morning.What do you want to do,put me on trial?" Pladeau askedthe host.

Pladeau also admitted to being aware of subsidiaries in tax havens used by Quebecor World, a separate company from Quebecoron whichheserved as a board member. He admitted he didn'tquestion the existence of those subsidiarieswhile sitting onthe board.

"You have to understand how it works. A board member doesn't have the power or the knowledge to change that," Pladeau said.

Finally, Pladeau was asked if he could "100 per cent guarantee" that Quebecor never used tax havens to avoid paying taxes in Quebec.

"Effectively I can't make that guarantee. I can't say that," Pladeau replied.

He went on to saya PQ government would put in place measures to fight tax avoidance.

As to whether he would sue Radio-Canada for its report, he said, "We'll see."

He continuesto refuse Radio-Canada's requests for an interview.

Quebecor addressed the story on its Twitter feed, referring specifically to two subsidiariesregistered in the Cayman Islands and one registered in Barbados.

The company says those subsidiaries were never created, held nor used by Quebecor.