About the underground economy
Video – Get it in Writing! Before you Build or Renovate
Video length: 50 seconds
The underground economy (UE) is business activity that is unreported or underreported for tax purposes. It can be particularly widespread in industry sectors where cash transactions are common, such as retail, hospitality, and construction, including home renovations…..just to name a few.
The UE hurts everyone. It has negative impacts on businesses, consumers, and the Canadian tax base as a whole. It undermines the competitiveness of businesses that follow the law.
In every community, there are honest business owners who are contributing to their neighbourhoods: creating employment, making investments in local economies, and supporting community activities such as sports teams.
Participating in the UE hurts them and, in turn, hurts the community. It robs the tax base of needed funds for schools, hospitals, and more. Don't do it!
Table of contents
- Learn more about the UE
- So how does the UE affect me personally?
- What can I do about the underground economy?
- What is the CRA doing to combat the underground economy?
- How is the CRA partnering with other organizations?
- How can I get my tax affairs straightened out before the CRA comes to me?
- Where can I get more information?
Get It In Writing! / Hiring A Contractor.com
When hiring a contractor, a pen is your most important tool.
Are you a trade student? Are you graduating soon? Then this Web site is for you!
www.TradeLinks.ca – resources for Canadian tradespersons
Did you know?
Suppression of sales involving electronic suppression of sales (ESS) software is a serious problem. ESS is being used by some businesses in their point-of-sale systems to hide their sales.
Budget 2013 proposes new administrative monetary penalties and criminal offences under the Excise Tax Act (such as in respect of GST/HST) and the Income Tax Act to address ESS.
Read our questions and answers to find out more.
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