Recently, CRA auditors reviewed municipal building permits in smaller communities. The auditors were checking for unregistered small-town subcontractors’ worksites. The result was that of the over 8,000 building permits reviewed about 33% were for unregistered building contractors. More than $4,400,000 in tax was collected.
The CRA focuses on the construction industry because it continues to be a source of unreported income in the underground economy. CRA also investigated hardware stores in more than 18 communities looking for installers that failed to report their income. CRA found that approximately only 7% of the installers were non-filers. The voluntary disclosure program is available for building contractors to bring their reporting up to date.
Talk to a Padgett office for help.