Rocco Zito, 87, had been a senior member of the notorious 'Ndrangheta, or Calabrian mafia, based in southern Italy, according to Canadian media.
He was once one of Toronto's most powerful mafia leaders, the Toronto Sun reported.
Zito's son-in-law, Domenico Scopelliti, has been charged with murder after turning himself in to police.
Police said officers arrived at Zito's home on Friday to find a man with gunshot wounds. Attempts were made to resuscitate him but he died of his injuries.
Officials did not immediately release the victim's name.
Mr Scopelliti, 51, was named as a suspect and he surrendered to authorities on Saturday, a police statement said.
He later appeared in court where he was charged with first-degree murder.
Zito was born in Fiumara, Calabria, Italy, in 1928 and moved to Canada in the mid-1950s.
He was reported to have had ties with branches of the 'Ndrangheta in New York, Montreal and Italy.
Italian police say the 'Ndrangheta operates the biggest cocaine smuggling network in Europe.
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