Fraud Rampant In Construction Industry

The United Brotherhood of Carpenters wants to educate people about construction industry tax fraud. 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). "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 of the 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.