Millwright Regional Council – Canada and Special Advisor on Social Policy, to the Deputy Prime Minister and Minister of Finance, Douglas Wong
The Millwright Regional Council – Canada met with Special Advisor on Social Policy to Deputy Prime Minister and Minister of Finance, Douglas Wong on April 18, 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%.
“The underground economy in Canada’s construction industry undermines the countries fiscal position and hurts legitimate contractors. The primary driver of the underground economy is employers improperly classifying their workers. This allows corrupt contractors the ability to eliminate the level playing field by styling their employees as ‘Independent Operators’ enjoy an unfair advantage over contractors that comply with their WSIB and tax obligations.”
Said Chris Sutton, Director of Public Affairs and Strategic Initiatives, for the Millwrights Regional Council – Canada
According to Statistics Canada, the total value of underground economic activity in 2021 was highest in the four largest economies: Ontario ($26.9 billion), Quebec ($15.5 billion), British Columbia ($11.1 billion) and Alberta ($6.8 billion). These four economies accounted for 87.9% of total underground economy, while the total GDP created by these four provinces accounted for 87.1% of total economy.
Construction industry tax fraud cheats only invest in themselves, and those that undermine legislation, skirt workers health and safety protocols, and avoid WSIB often cut corners with safety too. Fraudulent contractors cheat Canadians out of hard-earned pay and benefits by misclassifying workers as independent contractors and paying them under the table to avoid taxes, including worker protections, pension, health care, and employment insurance.
Tax fraud in construction makes job sites less safe because contractors who operate off the books or misclassify their employees as independent contractors cut corners and compromise the safety of workers, such as not paying appropriate Workers’ Compensation premiums.
The MRC is encouraged by Special Advisor on Social Policy, to the Deputy Prime Minister and Minister of Finance, Douglas Wong’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.
Safety is our Highest Priority. Learn more at www.stoptaxfraud.ca
About the Millwright Regional Council – Canada
The Millwright Regional Council – Canada (MRC) is composed of thirteen affiliated Local Unions of the United Brotherhood of Carpenters and Joiners of America (UBC) across Canada. UBC millwrights are vital partners in diverse industries such as energy, automotive, aerospace, food processing, and pharmaceuticals. ubcmillwrights.ca
For media inquiries, please contact:
| Andrew Bredin
Director of Communications |
