Lakeshore Advance, 2013-05-08, Page 88 Lakeshore Advance • Wednesday, May, 8, 2013
Joe Vaccaro of the Ontario Home Builders Association and Howard Bogach of the Tarion
Warranty Corporation
urge crackdown on
underground deals to
renovate or build
hollies
Hank Danlszewski
SMI Agency
Leaders of Ontario's home con
struction industry are urging a crack.
down on underground deals to reno-
vate or build homes.
jot' Vaccaro of the Ontario 1lolnt'
Builders Association (011 BA) and
I lotvard Bogach of the 'Fallon War-
ranty Corporation spoke to members
of the London I lone Builders Asso
dation (EARA) Monday as part of
cross -province tour.
While "cash only" deals to avoid
taxes and regulations art' common ill
renovation work, Bogach said a grow
ing number of homes are being built
by underground operators who do
not have the financial or technical
expertise to qualify for the home
warranty program.
"Wt' are finding people trying to
scant the system by not registering.
But if anything goes wrong, there is
no protection," said Bogach the (:1',O
of 'ration, a not-for-profit corpora-
tion which supervises home warranty
programs on behalf to the provincial
government.
Ile said individuals have always
been allowed to take out a hong'
building permit in their own name
but in practice he said the actual
work is done by an underground
operator.
Bogach said in some parts of
northern Ontario almost half of the
building permits are taken out by
individuals.
Cash -only deals have long been a
problem in the home renovation
business and Vaccaro said the 01113A
is pushing the Ontario government
for a permanent tax credit for home
renovations.
Vaccaro said a short-lived federal
tax credit in 2009 helped to tempo
rarily curb the underground econ
only, since a receipt from a legitimate
business was required to claim the
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Ile said the underground operators
are the winners avoiding taxes, insur-
ance and regulations.
"Consumers leave themselves
open to a hurl deal and no warranty
protection and the government loses
out on all sorts of revenue," he said.
Vaccaro said the underground
economy was boosted by the intro-
duction of the harmonized Sales 'lax
in 2010.
"We think its a growing problem.
People want 10 avoid that 13$ on
their invoice. It's that simple:"
1.1 IIIA president Toby Stoke said it
is difficult to estimate how touch
underground activity is going on in
the London St. 'Thomas area, but he
said the illegal activity is draining
business from legitimate contractors
"I'm sure it is going on. It's hap
peeing all across Ontario," said
Slolee.
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