Criminal Contractors

Criminal Contractors

The Surete du Quebec in conjunction with Revenue Quebec's investigative division, have been working on investigation since 2008 to uncover tax evasion schemes in construction industry in province. They already receives warrants for 14 people and expects to raid a dozen homes and businesses in Montreal and Laval.

Arrest warrants were issued for charges of tax evasion or by leading a tax evasion scheme. All suspects are working in the construction industry. They used fake invoices, paid employees in cash without deduction of local taxes.

Unlike Canada, where shadow construction and repairs as the white Crow, in Armenia shadow is almost all market of individual housing construction and repairs, and works done without any contracts or papers, or complex tax avoidance schemes. It seems more logical and obvious, when works done by craftsman or craftsmen teams . Note also that in Armenia, for legal contracts with licensed construction company, the labor cost of the work increases by 50% ( VAT and all other taxes and fees)! Here is a huge tax differences in shadow and legal markets, what ultimately lead thriving shadow and legal business to die out. There is the unequal competition with deep tax gorges to align and Government should launch a long and hard program to equal tax burden for all parties involved and provide live opportunities for small and middle construction companies legal development. Maybe after creating such "equal working conditions", we can act like Canada...