June 6, 2016 Ottawa, ON Canada Revenue Agency

The Government of Canada is continuing its efforts to combat tax evasion to create a tax system that is fair for all Canadians. When taxpayers and businesses participate in the underground economy, this puts an unfair burden on honest, middle class Canadians who pay their share of taxes and it hinders the development of businesses that respect the rules. This is why it is essential to create a fair tax system in which all taxpayers respect their tax obligations.

Minister of National Revenue Diane Lebouthillier and Parliamentary Secretary to the Minister of National Revenue Emmanuel Dubourg today met with members of the Minister’s Underground Economy Advisory Committee to look at ways to join forces to more actively combat the underground economy in Canada.

Members of the Committee include industry partners, experts and professional organizations. The Committee advises the Minister and the Canada Revenue Agency (CRA) and collaborates with members on measures to reduce the acceptability of and participation in the underground economy. Since it began its work, the Committee has helped refine the CRA’s Underground Economy Strategy, with a particular focus aimed at preventing, detecting, and addressing unreported and under-reported sales or income.

Today’s meeting provided the Minister with an opportunity to pursue dialogue with stakeholders. The Committee’s advice and recommendations will help the CRA improve its methods and strategies to more effectively identify those who avoid paying their fair share of taxes and bring them into compliance with the law.

By collaborating with industry partners along with provincial and territorial governments, the Government of Canada continues to fight the underground economy and help create a level playing field for all businesses and taxpayers.

Quick facts

• The Minister’s Underground Economy Advisory Committee meets regularly and includes representatives from the following organizations:
  • Restaurants Canada
  • Canadian Home Builders' Association
  • Canadian Federation of Independent Business
  • Canadian Payroll Association
  • Canadian Chamber of Commerce
  • Chartered Professional Accountants of Canada
  • Retail Council of Canada
  • Merit Contractors Association
  • Association de Planification Fiscale et Financière
  • Rotman School of Management at the University of Toronto
• The CRA’s Underground Economy Strategy focuses on three strategic themes to reduce participation in the underground economy:
  • further refine the CRA’s understanding of the underground economy;
  • seek to reduce the social acceptability of participation in the underground economy; and
  • deploy a range of initiatives to encourage compliance and reduce participation in the underground economy.

Quotes

“I am pleased to work with industry partners on this important issue - the fight against the underground economy. Their insight will help the CRA deliver on the government’s commitment to combat tax evasion and tax avoidance. The vast majority of Canadians pay their fair share of taxes and they must have confidence that the tax system is fair for everyone.”

- The Honourable Diane Lebouthillier, P.C., M.P., Minister of National Revenue

“Participating in the underground economy is wrong. Individuals or businesses that deliberately underreport or fail to report income to avoid paying taxes are depriving Canadians and their communities of critical public services.”

- The Honourable Emmanuel Dubourg, M.P., Parliamentary Secretary to the Minister of National Revenue