The Underground Economy
Early in 2015 a CRA Newswire announced that on April 29, 2015 Statistics Canada released the new underground economy estimates for Canada for the period from 1992 to 2012. Some figures included:
- from 2007 to 2012 underground economy activity increased 14% compared to a 17% increase in GDP; and,
- four sectors accounted for 66% of the total estimated underground activities - residential construction (28%); finance, insurance, real estate, rental, leasing and holding companies (14%); retail trade (12%); and accommodation and food and services (12%).
CRA noted that they will analyze the results of this study to develop targeting strategies. Further, the 2015 budget proposes to provide an additional $118 million over 5 years to enhance CRA's underground economy audit efforts.