Ontario Construction News staff writer
The fight to stop tax fraud on construction sites is more important than ever in the face of the COVID-19 pandemic, says the president of the Carpenters’ District Council of Ontario (CDCO).
“In the circumstances we find ourselves in today where the federal government is putting billions of dollars into the economy to support our organizations and workers across the country, we need to ensure we go after the cheaters, we have to go after the underground economy because,” said Mike Yorke in an interview with Ontario Construction News.
“Tax fraud, the underground economy, will destroy the public services that we are relying on to get through this crisis. “Those who cheat on their taxes and misrepresent the classification of workers have to be stopped and they have to be stopped as soon as possible.”
In a series of videos available on the notaxfraud.com website, carpenters and public officials back the cause and ask for public support, speaking out about tax fraud steals money from the government coffers and hurts all Canadians, especially during an emergency like COVID-19 when all levels of government are supporting the economy with record spending.
“Part of taking care of each other is paying taxes and its even more crucial in times like this,” said one worker. “Those taxes pay for our healthcare. Taxes pay for our roads and other important services. When you don’t pay taxes, how do we pay for healthcare? How would the government support workers during COVID-19?
Marit Styles, Member of Provincial Parliament for Davenport in Toronto, says the issue is about money and safety.
“When somebody is going out there and seeking work that’s not done by professional tradespeople, maybe we’re not getting the safest quality of work,” she said in a video. “Also, when people are paid a decent wage and they’re paying taxes, that goes back into our economy to fund schools, healthcare and other services.”
The notaxfraud campaign urges people to speak out about illegal worksites and to contact representatives of all levels of government to shut down the underground economy.
“If the government doesn’t have the money, they can’t fight against the coronavirus and they can’t support the millions of Canadians who are now struggling,” he said.
Ontario’s unionized carpenters are rally colleagues across North America each year in April for Days of Action protests designed to raise awareness of tax fraud and the underground economy that is alive and well in the construction industry.
This year will be different, since COVID-19 makes public protests and rallies impossible, but the message is just as strong as ever, and Ontario’s carpenters will be rallying the public, trades and politicians this year with letters, emails, videos and phone calls.
The underground economy in Ontario’s construction industry undermines the province’s fiscal position and hurts legitimate contractors. A study commissioned by the Ontario Construction Secretariat estimates that annual revenue losses due to underground activity increased by 30 per cent over the past decade.
Between 2013 and 2017, the provincial and federal governments lost between $1.8 billion and $3.1 billion annually as a result of contractors operating in the underground economy. In 2009 annual revenue losses were around $1.4 and $2.4 billion.
Yorke says the point of the spirit of the Days of Action can’t be lost even though the physical events are cancelled this year.
“We can still speak out, but we will have to reach our politicians directly,” he said, explaining the plan to reach out to municipal, provincial and national politicians to rally support and ask for swift action to shut down illegal sites and take money out of the underground economy.
The annual campaign is organized by the United Brotherhood of Carpenters and Joiners of America and includes events in more than 70 cities.
“If we reduce tax fraud, we can ensure that the government has the money it needs to support Ontario and Canada through an emergency such as the one we find ourselves in right now,” Yorke said.
Going forward, however, shutting down tax fraud will help rebuild the economy after the pandemic and to “build better communities for the future.” Yorke said.
“This is an important concern for everybody across the country and it should be more of a public issue,” he said. “We need to tell the public how much money we are losing, and we need to catch the cheaters.”
Along with taking billions of dollars out of public coffers, construction companies willing to commit tax fraud make it difficult for legitimate businesses to compete.
“Once the coronavirus crisis is behind us, the roads will still have to be fixed, subways must be built, hospitals need to be built, and this infrastructure building will only be possible with tax money.
Notaxfraud.com organizers want the public to know how much money is lost and hard legitimate businesses work to compete with people who are committing tax fraud and cheating the system.
“We are doing our part and we need everyone to join us so that we can be heard, and our politicians will take action,” Yorke said.
Visit notaxfraud.com for more information.