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UBC JUST FLAG

Tax Fraud

The Undergrown Economy Hurts Us All

Join us for Annual Tax Fraud Days of Action Campaign April 11-16, 2022

Tax Fraud

The Undergrown Economy Hurts Us All

Join us for Annual Tax Fraud Days of
Action Campaign April 11-16, 2022

Construction industry tax fraud, labour trafficking
and the underground economy cost the Canadian economy billions.

By misclassifying workers as independent contractors and paying them under the table to avoid taxes, fraudsters cheat workers out of hard-earned pay and benefits. This includes worker protections, pension, health care and unemployment insurance. 

That’s why we’re calling on the Government of Canada to partner with us and take steps to tackle this growing issue.

Construction industry tax fraud, labour trafficking
and the underground economy cost the Canadian economy billions.

By misclassifying workers as independent contractors and paying them under the table to avoid taxes, fraudsters cheat workers out of hard-earned pay and benefits. This includes worker protections, pension, health care and unemployment insurance. 

That’s why we’re calling on the Government of Canada to partner with us and take steps to tackle this growing issue.

  • In Alberta, the underground economy is estimated to be worth $5.8 billion, according to Statistics Canada.

  • According to Statistics Canada, the underground economy accounted for $61.2 billion in economic activity in 2018.

  • The largest slice of Canada’s underground economy activity in 2018 came from the residential construction industry (26.2 per cent or $16 billion).

  • A national U.S. study on construction industry tax fraud commissioned by the UBC in 2020 found that corrupt contractors were failing to pay taxes, insurance premiums and proper wages to 1.3 to 2.2 million construction workers annually.

  • A 2019 study of Ontario’s underground construction economy put the annual losses in federal and provincial tax revenue up to $3.1 billion.
 
  • In Alberta, the underground economy is estimated to be worth $5.8 billion, according to Statistics Canada.

  • According to Statistics Canada, the underground economy accounted for $61.2 billion in economic activity in 2018.

  • The largest slice of Canada’s underground economy activity in 2018 came from the residential construction industry (26.2 per cent or $16 billion).

  • A national U.S. study on construction industry tax fraud commissioned by the UBC in 2020 found that corrupt contractors were failing to pay taxes, insurance premiums and proper wages to 1.3 to 2.2 million construction workers annually.

  • A 2019 study of Ontario’s underground construction economy put the annual losses in federal and provincial tax revenue up to $3.1 billion.