Well it seems that the Federal Government is going to sink its teeth into what they call the underground economy as it relates to the building industry.
The plan of attack is an investment of $118 million to fight against this. The Campaign is being called “Get It in Writing”. The government is teaming up with the Canadian Home Builder’s association for this new campaign.
It about “Under the Table Transactions”
If the truth were brought about, for most people are guilty of a least one small form of a under the table job being done for them. This is basically a cash deal so there is no paper trail, and therefore no tax is collected.
This is what the government wants to crack down on and is called the underground economy which is pretty substantial in the construction and building trades.
So with this $118 million which will be used over five years it is going to go for various campaigns and workings to clamp down on this.
One of the steps proposed is the CRA is going to increase their Underground Economy Specialist Teams. Now this is a little strange isn’t it when not too long ago there were indications that there were cut backs in the CRA.
The job of this elite CRA group will be to focus on those activities that are considered to be high risk ones in regards to under the table deals.
The Government is also planning a public awareness campaign. So you can expect to see a lot of ads and various forms of media about this. Added to this the Government is going to back the Canadian Home Builders Campaign with $745,000 in funds spread out over three years for their “Get It In Writing” Campaign. This campaign is geared towards discouraging participation in the under the table activities. You can also expect a crack down on consumers who participate in the underground economy.
To soften the blow and to somewhat act as carrot of enticement the Government also is focusing on what tax cuts and benefits there are to help making owning a home more affordable.
In case you weren’t aware of it this concept of fighting the underground economy has not just surfaced as it was brought to the foreground last fall. There has been an advisory committee set up and they have already had their first meeting.
So as Canadians we better be prepared for another CRA tax war and don’t become victims of their wrath as under the table participants.
