The underground economy in the Construction industry steals billions of dollars every year from Canadian taxpayers. It is time to stand up and speak out.
OTTAWA, ON, April 14, 2021 /CNW/ - The United Brotherhood of Carpenters announces the start of the 2021 Tax Fraud Days of Action (April 14-17, 2021) to educate people about construction industry tax fraud.
"The underground economy is thriving in Canada, especially in the construction industry, stealing billions of dollars every year. Tax fraud is robbing honest and hardworking Canadians and their families of the services they have worked for and deserve," says Jason Rowe, Vice President, United Brotherhood of Carpenters, Canadian District.
Communities suffer as funding for essential programs and infrastructure is lost to thieving contractors who evade their tax responsibilities and undermine the legislation.
Dishonest employers intentionally misclassify workers as independent contractors or pay them in cash to ensure workers do not appear on employer payroll records and are not covered by unemployment insurance. As a result, businesses significantly reduce their income tax and dodge their legal obligations.
When employers shift their tax burden onto their employees, the employees must then pay their employer's employment taxes, which places a substantial financial burden on working families.
Construction industry tax fraud punishes fair-minded construction firms that cannot compete with fraudulent businesses' labor costs. Failing to report employment income or withhold income taxes properly leads to severe tax revenue shortfalls.
According to Statistics Canada, the underground economy accounted for $61.2 billion in economic activity in 2018. The most significant slice of Canada's underground economy in 2018 came from the residential construction industry (26.2 percent or $16 billion).
That's billions of dollars in lost tax revenue that should be used to repair roads, schools, care for veterans, and fund other essential public programs.
"The United Brotherhood of Carpenters' regional councils across the U.S. and Canada are working with honest contractors and community stakeholders to level the playing field by shining a spotlight on the underground economy and those who engage in this illegal activity. The UBC is engaging government and law enforcement to take action," says Jason Rowe, Vice President, The United Brotherhood of Carpenters and Joiners, Canadian District.
It is time for Canadians to stand up against tax fraud and fight corruption so we can have the programs and services required in our communities.
For more information, visit https://stoptaxfraud.net/
SOURCE United Brotherhood of Carpenters
For media inquiries, please contact: Jodie Lucas, UBC Canadian District, Phone: (204) 509-1972, Email: [email protected]
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