Solutions
“Exploited workers and law-abiding contractors do not deserve the hand they’ve been dealt because of the greed and callousness that is the foundation of the tax fraud business model,” said UBC General President Douglas J. McCarron. “We will not rest until this ends.”
See what we did in 2024What should we do to stop construction industry employer tax fraud?
IN THE UNITED STATES
ENFORCE THE LAW.
The IRS and other tax agencies need more funding to do their jobs, and engage in strategic, impactful enforcement.
MAKE OUR LAWS STRONGER.
We need to expand and strengthen solutions that work.
Sophisticated contractors at the upper levels repeatedly use law-breaking subcontractors and labor brokers to get around the law. They will keep cheating and committing employer tax fraud as long as they can dodge accountability. If those contractors were held responsible they would think twice before using crooked subcontractors and labor brokers.
We also need to strengthen private enforcement by removing roadblocks like forced individual arbitration agreements.
REFORM IMMIGRATION.
Enact comprehensive immigration reform to bring construction workers out of the shadows, so they will not be afraid to stick up for their rights.
WORK TOGETHER.
Our tax agencies need to get out of their silos and work together. State Attorneys General and district attorneys can team up to fight construction industry employer tax fraud in states, provinces, counties and cities. Banks can play a role too by updating their alert systems to red flag potential fraudsters.
Workers’ Compensation Insurers
Workers’ Compensation insurers can stop their practices that enable fraud.
IN CANADA
ENFORCE THE LAW.
The Canada Revenue Agency’s (CRA) Criminal Investigations Program and other government enforcement agencies need more funding to do their jobs, and engage in strategic, impactful enforcement.
MAKE OUR LAWS STRONGER.
We need to expand and strengthen solutions that work.
Sophisticated contractors at the upper levels use law-breaking subcontractors and labour brokers to get around the law. They will keep cheating and committing employer tax fraud as long as they can dodge accountability. If those contractors were held responsible they would think twice before using crooked subcontractors and labour brokers.
We also need to strengthen reporting mechanisms so when a citizen reports tax fraud, action is taken.
REFORM IMMIGRATION.
Enact comprehensive immigration reform to bring construction workers out of the shadows, so they will not be afraid to stick up for their rights.
WORK TOGETHER.
The CRA and other enforcement agencies need to get out of their silos and work together. Provincial and federal prosecutors can team up with investigators to fight construction industry employer tax fraud throughout Canada. Banks can play a role too by updating their alert systems to red flag potential fraudsters.