Underground Construction Economy Hurts Everyone
The underground economy is a growing and serious problem for the legitimate construction industry. In 2001, it was estimated that underground work accounted for roughly one-quarter of all construction work.
Approximately $2.4 billion of income is generated as a result of underground work in Ontario’s construction industry. Further, it is estimated that $1.3 billion is lost to governments and government agencies as a result of underground activity in Ontario’s construction industry. Approximately 64% of this loss is attributable to income that is not declared for Income Tax purposes.
The growth of the underground economy has many other negative implications for the construction industry. These include higher tax and contribution burdens on legitimate contractors and workers. The growth of underground practices in construction also results in unfair competition for legitimate contractors and workers. As well, underground practices potentially weaken health and safety policies, undermine labour standards and erode construction standards. Finally, underground practices reduce the contribution base for benefits plans and weaken apprenticeship training and skills development.
Source: undergroundeconomy.ca
More Information: hiringacontractor.com
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About the Muskoka Builders' Association
The Muskoka Builders' Association represents over 90 companies involved in the construction industry in Muskoka. Our members are Builders, Suppliers, Trade Contractors and Service Professionals who are devoted to the promotion of professionalism in the industry.
Our goals as an Association are to promote the professionalism of our membership; build consumer awareness; offer networking opportunities and training to our members; offere quality, affordability and choice for the consumer and build the dreams of countless Muskoka families.
