Tax Evasion in the Construction Sector

Tax losses due to the underground economy in the construction sector total $1.5 billion per year.

Among all economic sectors, the construction sector ranks first in terms of tax revenue losses. To fight tax evasion in this sector, we have undertaken major initiatives, intensified tax control measures and implemented various preventative measures.

For example:

  • In cooperation with other government departments and organizations, we implemented an integrated action plan to assure better intergovernmental coordination and foster the exchange of information regarding this sector.  
  • The ACCES Construction Committee (concerted actions to counter the underground economy in the construction industry) was created.
  • Auditors will be present on large construction sites (as of 2012-2013 hundreds of sites will be covered, representing a two-fold increase). 
  • A construction company must hold an Attestation de Revenu Québec to be eligible to bid for a government contract.
  • A pilot project has been implemented to ensure that residential renovation is carried out in keeping with fiscal regulations in Québec City, Montréal, Trois-Rivières, Laval, Rimouski and in the Montréal borough of Rivière-des-Prairies—Pointe-aux-Trembles.
  • In cooperation with the Régie du bâtiment du Québec, the Commission de la construction du Québec and the Commission de la santé et de la sécurité du travail, we have been carrying out intensive interventions in certain high-risk sectors.
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