Millwright Regional Council – Canada and MP meet to discuss partnering on tax fraud concerns

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CaDCR staff writer

The Millwright Regional Council – Canada met with MP Kelly McCauley on April 1, 2024 to discuss tax fraud and the underground economy in Canada’s construction industry, and ways to partner together on this issue.

The underground economy in Canada’s construction industry undermines the countries fiscal position and hurts legitimate contractors. The residential construction industry accounted for 35.0% ($23.9 billion) of all underground economic activity which includes lessors of real estate 12.7% and retail trade 10.5% combined with accommodation and food services 7.3%.

“Contractors that achieve a competitive advantage by styling their employees as independent operators enjoy an unfair advantage over contractors that comply with their WSIB and tax obligations,” Dave Maitland, MRC Representative, UBC Millwright Local 1460 Edmonton Alberta, said in a statement.

Most recent looks at the 2021 fiscal year which a Statistic Canada report that was released Feb. 20, 2023; it increased by 4.8% in 2021 creating approximately $68.5 billion in underground economy activity in Canada or 2.7% of total GDP during this period.

Underground economic activity negatively affects economic growth in Canada. It also reduces tax revenues for all levels of government, putting pressure on the government’s ability to provide the services and benefits that Canadians enjoy and expect. Moreover, these illegal activities continue to erode Canadian’s faith in the integrity and fairness of Canada’s tax system, undermine the competitiveness of honest businesses, as well as cause honest taxpayers to bear the tax load of those who cheat.

We are encouraged by MP Kelly McCauley’s support to end construction industry tax fraud and working together towards solutions that reign in the underground economy.

The UBC Tax Fraud Days of Action is taking place across Canada and the United States April 13-19, 2024, to bring awareness to the issues of tax fraud and the underground economy.
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