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Updated: Fri, 27 Sep 2013 22:04:51 GMT | By CBC News, cbc.ca

Nicolo Rizzuto's tax rebate cheque now under investigation



The commissioner of the Canada Revenue Agency is launching an internal investigation into a $381,000 rebate cheque issued to mob boss Nicolo Rizzuto in 2007. Here, Rizzuto leaves a Montreal prison in October 2008. Rizzuto was shot and killed at his home two years later. Graham Hughes/Canadian Press

The commissioner of the Canada Revenue Agency is launching an internal investigation into a $381,000 rebate cheque issued to mob boss Nicolo Rizzuto in 2007. Here, Rizzuto leaves a Montreal prison in October 2008. Rizzuto was shot and killed at his home two years later. Graham Hughes/Canadian Press

The head of the Canada Revenue Agency is launching an internal investigation into a $381,000 rebate cheque issued to mob boss Nicolo Rizzuto in 2007, confirms Minister of National Revenue Kerry-Lynne Findlay.

NicoloRizzuto

"This government considers any misconduct by tax officials unacceptable. We are acting to hold people accountable.​"

At the time of the rebate, Rizzuto was in prison and owed more than one and a half million dollars in unpaid taxes.

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In a message to all CRA employees on Friday, obtained by CBC News, CTreuschhow the cheque was issued to Rizzuto have turned up "no criminal wrongdoing."

Treusch still decided to to the Security and Internal Affairs Division for an "independent and immediate review." 

His order was made with instructions that the division share information about any criminal behaviour with police.

"If any information revealed by this investigation gives rise to questions of possible criminal behaviour, I have given direction that it be shared immediately with law enforcement officials," Treusch said in his message.

This week, former CRA employees spoke on camera to the investigative program Enquête, on Radio-Canada, CBC's French-language sister network, as part of a three-year investigation by its journalists into graft allegations at the tax agency's Montreal office.

Two former auditors said problems at the CRA run much deeper than a $381,000 rebate cheque. The former CRA employees said they witnessed an attempt to stall a corruption probe and colleagues getting cozy with organized crime.

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