REALTORS: Rebate would curb growth of underground economy
A recent study conducted by
Ipsos Reid revealed that home owners rated the `freedom to do what they want` with their home as the second biggest benefit to home ownership, right behind `building equity` and just ahead of `stability.`
It is no surprise then that home renovations undertaken by Ontario`s 3.2 million home owners produced over $20.3 billion in economic activity last year. Unfortunately, a large amount of home renovation work in this province is conducted visa-vi the `cash deal` or through the underground economy. According to housing experts at
Altus Group, 37 per cent or $5.2 billion of the output from the provincial home renovation industry in 2010 was conducted through the underground economy.
Unscrupulous workers hurt the reputations and competitiveness of legitimate renovation contractors and cheat governments out of billions of dollars. The
Ontario Home Builders Association (OHBA) estimates that the underground home renovation economy causes the loss of up to $298 million in HST revenue annually, $1.6 billion in income tax revenue annually and $767 million in other revenues such as CPP, WSIB, Employer Health Tax and Employment Insurance Premiums.
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