Legal Blog

Reporting

The federal government is upset with the underground economy in the construction industry. This economy flourishes in the residential sector but is probably relatively scarce in the ICI sector.

As a result, the government announced in its February 1998 budget that it would initiate a construction reporting system whereby all contract payments would have to be reported to Revenue Canada.

The following information will have to be supplied:

1. The name or trade name of the payee;
2. The business address of the payee;
3. The business number of the payee of, if an individual, the social insurance number; and
4. The amount paid or credited for the calendar year. 

It is anticipated that the reporting requirements will commence in February 2000. Be aware. Speak to your accountant about this.