Michel Duchaussoy has been formally charged with second-degree murder in the Wednesday morning death of taxi driver Ziad Bouzid.

Duchaussoy will remain in police custody until his next court date, set for Jan. 23, 2014. 

Montreal police confirm that 45-year-old Bouzid was shot in the head while driving his taxi early Wednesday morning in Côte-des-Neiges.

"We found the firearm that may have been used during the murder, but there are many investigative steps that still need to be taken today," said Cmdr. Patrice Carrier of the Montreal police's major crimes unit at a news conference on Friday morning.

Police arrested 43-year-old Duchaussoy on Thursday evening in connection to the death. They found the suspect on Nobel Street in Boucherville, on Montreal's South Shore. 

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Ziad Bouzil was found unconscious in his car in Côte-des-Neiges and was pronounced dead in hospital. (CBC)

Carrier said they now believe there were two passengers in Bouzid’s taxi cab just after midnight on Wednesday.

"There was a massive police operation where numerous addresses were targeted," said Carrier. 

Police are looking for a woman in her early 50s who may be a witness, though Carrier would not offer further details on her relationship with Duchaussoy.

Carrier said Duchaussoy and the woman entered the taxi at a fast food restaurant in Dorval and were driven to Côte-des-Neiges, where Bouzid was shot in the head

Carrier said Duchaussoy and the woman separated after Bouzid was killed.