What is construction industry tax fraud?

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Provincial governments implementing General Contractor Liability legislation
This legislation would create liability for general contractors should their subcontractors fail to pay employee wages or make required remittances on their behalf. This would create greater accountability and ensure general contractors are liable for illegal practices that occur on projects under their supervision.

Increasing transparency in procurement processes on all government-funded projects
General contractors that successfully bid on government-funded projects should be obligated, by law, to provide the following before monies are paid out to them: a list of all sub-contractors hired for that project, a list of all the employees of those subcontractors working on the project, and statutory declarations stating that all employee remittances and payments have been paid in full.

Requiring apprentice minimums on all government-funded projects
On government-funded construction projects, stipulate that 10-15% of total workforce hours must be completed by individuals in registered apprenticeship programs. Creating this condition for contractors to secure lucrative capital projects would help incentivize them to hire more registered apprentices and fewer undocumented workers. A better trained workforce will help these projects get completed on time and on budget while also creating more pathways to lifelong careers in the construction industry.

Tax Fraud:

has become a significant problem in our country, and the underground economy accounts for $68.5 billion in economic activity annually.
is a growing problem in the construction industry that negatively impacts workers and honest contractors.
makes construction jobsites less safe because some contractors cut corners by not paying workers’; compensation premiums. Unscrupulous contractors will also avoid paying worker premiums for employment insurance and pension.
makes it more challenging for honest contractors to stay competitive. Robs all Canadians of tax revenues that should rightfully be committed to programs, services and supports they are entitled to.