Firoz Patel now owes Revenu Québec $15.2 million in unpaid taxes, a figure revised upward from an initial $10.8 million assessment. The new total follows an ongoing investigation that uncovered an additional $26.2 million USD in undeclared income.
Revenu Québec's efforts to recover these funds include freezing Patel's Canadian bank accounts and seizing the Patel family home in Montreal. These actions reflect the regulator's broad powers to compel compliance and recover outstanding tax liabilities.
The provincial tax authority also seeks an additional $1.2 million from Mazarine Commerce, a shell company allegedly used to operate Payza. Such entities often serve to obscure financial flows and ownership, complicating efforts to trace transactions and assess tax obligations accurately.
The tax liabilities extend beyond Firoz Patel himself. His wife, Nazlin Patel, is being pursued for $2.6 million. And his brother, Ferhan Patel, a co-founder of Payza, faces a separate claim of $1.8 million from Revenu Québec. This suggests a broader pattern of undeclared income across the family's financial operations.
In an interview with Journal de Montreal, Firoz Patel attributed his unreported income to "late accounting." He claimed that Revenu Québec's projections were based on client funds that passed through Payza's accounts, not his personal earnings. "Our lawyer has already shown that the money they took into consideration was not ours, but that of our clients," Patel stated. This defense implies a fundamental disagreement over the classification of funds handled by the online payment processor.
Payza, an e-currency exchanger, facilitated global transactions and was known for its role in online commerce, including high-risk ventures. Its operational model, involving the movement of client funds, often attracted scrutiny from financial regulators concerning money laundering and compliance.
Patel's return to Canada on June 12th, announced on Facebook, ended a period of hiding after a significant legal challenge in the United States. He is wanted in the US on an arrest warrant tied to a $250 million money laundering indictment. The US charges accuse him of operating an unlicensed money transmitting business and conspiring to commit money laundering.
Despite the active US arrest warrant, Canadian authorities have not yet moved to apprehend Patel. Extradition processes between Canada and the United States can be complex, involving legal reviews and judicial proceedings before any transfer of an accused individual can occur. Patel's continued presence in Canada, while facing serious charges in both countries, highlights the jurisdictional challenges in cross-border financial enforcement.