Underground Economy Alive And Well In Canada
Forty percent of Canadian adults admit to having purchased goods or services without paying GST. Interestingly, the wealthiest Canadians are most likely to have made such a purchase. More than half (52%) of Canadians with an annual household income of over $100,000 have participated in the underground economy, while just one-third (33%) of those with an annual household income of under $55,000 have done so. Other findings include:
- Males are more likely to have purchased goods or services without paying GST than are females (46% vs. 35%, respectively).
- Canadians residing east of the Ontario border are least likely to have purchased goods/services without paying GST (31% in Quebec, and 35% in Atlantic provinces), while those in Ontario and Western Canada are the most likely to have done so (45% in B.C., 44% in Ontario Alberta, and Saskatchewan/Manitoba).
- Canadians aged 18-34 years are least likely to have participated in the underground economy (32% vs. 46% among 35-54 year olds and 40% among those 55 or older).
Canadians participating in the underground economy have purchased a variety of goods and services without paying GST, including: house cleaning (40%), general contracting work (36%), house painting (25%), alcohol and cigarettes (13%), and bootleg CDs/DVDs (11%).
Three-quarters (77%) of Canadians believe it is solely the responsibility of the vendor to report the taxes to the government. However, Quebec residents are far less likely than other Canadians to place the tax-reporting obligation strictly on the seller (48% vs. 77% overall).
These are the findings of an online survey of 1,184 Canadian adults over the age of 18. With a sample of this size, the results are considered accurate to within 1772.8 percentage points, 19 times out of 20, of what would have been, had this entire population been polled. The online survey was conducted between April 27th and May 1st, 2006.
For more information on this news release, please contact:
Rick Lempera
Senior Research Manager
Ipsos Reid
416.324.2900
[email protected]
Ipsos Reid
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