The Canada Revenue Agency wants former Winnipeg chief administrative officer Phil Sheegl and his company FSS Financial Support Services Inc. to pay taxes on bribe money the company received from the contractor that built the Winnipeg Police Service headquarters, court documents reveal. 

The revenue agency said it was reassessing Sheegl’s and FSS’s taxes for 2011, according to a court document.

The CRA says that’s because the company received a $200,000 “secret commission,” which is considered income that it did not declare, according to a notice of appeal filed by Sheegl on April 19, 2022, in Tax Court of Canada.

“In failing to report all its income for the 2011 taxation year, the appellant made misrepresentations attributable to neglect, carelessness or wilful default,” the attorney general of Canada said in a reply to a separate notice of appeal by FSS, which was also filed on April 19.

The documents say the money Financial Support Services received came from Mountain Construction — a company controlled by Armik Babakhanians, whose main construction business is Caspian Projects Inc.

That happened in 2011, two days after Caspian was awarded a contract to build the Winnipeg Police Service headquarters, the documents say.

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