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Released: 25 February, 1998
Sub-Contract Reporting To Be Focus Of Consultations
OTTAWA, February 25, 1998....
The Honourable Herb Dhaliwal, Minister of National Revenue and M.P. (Vancouver
South-Burnaby), announced today that Revenue Canada will be consulting with
construction industry associations and unions on the implementation of the
sub-contracting reporting initiative announced by the Honourable Paul Martin in
the Budget tabled yesterday in the House of Commons.
Mr. Dhaliwal highlighted the
importance of addressing underground economic activity in the construction
industry. "We need to ensure that there is a level playing field for
business, but at the same time we recognize that there is a critical need to
minimize compliance costs, especially for small and medium-sized
businesses," the Minister said.
Revenue Canada will be
working with industry and union representatives over the next few months to
determine how best to implement sub-contractor reporting, including examining
alternative ways in which the information can be provided.
"This consultation
process is extremely important," said Mr. Dhaliwal. "We will make
every effort to ensure that the concerns of small and medium-sized businesses
are heard and addressed."
Mr. Dhaliwal also pointed out
that the Government is resuming the reporting of payments to all federal
government service contractors. Reporting begins in 1998 for federal departments
and agencies, and in 1999 for federal Crown Corporations. This initiative
complements measures taken by provinces such as New Brunswick and Newfoundland
who report similar information.
"By working in
partnership with our key stakeholders and doing our part to report payments to
contractors, the Government is demonstrating its commitment to addressing the
underground economy," the Minister said.
Mr. Dhaliwal said that the
consultations with the construction industry on the most effective approach for
sub-contractor reporting will be concluded by the end of the summer.
-30-
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05T/98
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