The United Brotherhood of Joiners

Published On: April 7, 2021Categories: Press Release

UBC Canadian District And Canada’s Parliamentary Secretary to the Minister Of National Revenue Discuss Tax Fraud and The Underground Economy

Toronto, ON. – 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.

As stated by Jason Rowe, Canadian District Vice President of the United Brotherhood of Carpenters “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. 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 points out that 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% 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 SecretaryTreasurer of the Millwright Regional Council – Canada.

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

We are encouraged by Honourable Francesco Sorbara’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 14-17, 2021 to bring awareness to the issues of tax fraud and the underground economy. Learn more