< Ministers weigh in on tax fraud and the underground economy in Canadian construction industry - Canadian Fraud News Inc. | Fraud related news | Fraud in Canada

Ministers weigh in on tax fraud and the underground economy in Canadian construction industry

April 12, 2021 – The UBC Canadian District met with the Honourable Francesco Sorbara, Parliamentary Secretary to the Minister of National Revenue on Wednesday, April 7 to discuss tax fraud and the underground economy in the Canadian construction industry, and ways to partner together on this issue.

“The UBC is working hard with governments, honest contractors and community stakeholders to level the playing field by shining a bright spotlight on the underground economy and those who engage in this illegal activity,” said Jason Rowe, Canadian District Vice President of the United Brotherhood of Carpenters. “It is time for Canadians to stand up against tax fraud and fight corruption in the underground economy so we can have the programs and services required in our communities.”

Statistics Canada said residential construction remains the top contributor to underground activity. In 2018, four industries accounted for more than half of underground economic activity with residential construction accounting for a massive 26.2 per cent of the underground economy.

“The styling of workers as ‘independent operators’ is the real foundation of the underground economy and the principal cause of revenue losses to governments and government agencies,” said Ed Spence, Executive Secretary-Treasurer of the Millwright Regional Council of Ontario.

Statistics Canada estimated gross domestic product (GDP) at market prices for underground economic activity in Canada reached $61.2 billion, or 2.7 per cent of total GDP, in 2018.

“This situation undermines the level playing field that is important to the integrity of the construction industry. There are a lot of contractors who are trying to avoid paying taxes, and Covid-19 has made it even worse,” said Tony Iannuzzi, Executive Secretary-Treasurer for the Carpenters District Council of Ontario.

The UBC Tax Fraud Days of Action is taking place across Canada and the United States April 14-17, 2021 to bring awareness to the issues of tax fraud and the underground economy. Learn more www.stoptaxfraud.net www.stopthefraud.ca www.notaxfraud.com