January 30th, 2014

Conservatives turning a blind eye to the underground economy

The Conservative government has failed to take action to reduce business activity that goes unreported for taxes purposes to the tune of $41 billion a year in economic activity, according to a report from Statistics Canada. This is a failure that hurts business, consumers and all levels of government.

“The underground economy is thriving and Canadians and businesses who play by the rules are paying the price. But instead of taking action to protect Canadians, the Conservatives are sitting on their hands,” said NDP National Revenue and Pensions critic Murray Rankin (Victoria). "People who don’t play by the rules shouldn’t be getting ahead.”

According to a recent Statistics Canada study, the size of underground economy has not declined since 2001. The study finds that corporations rake in over billions a year in unreported revenues, which significantly undermines competitors who comply with the law.