What to do when you hire a contractor

The Canada Revenue Agency has issued a Taxpayer Alert reminding Canadians to protect themselves when hiring a contractor, to be aware of cash deals without contracts or receipts, and avoid contributing to the underground economy.

"Without a contract, you could lose any deposit or advance payment given to the contractor, or find yourself charged far more than you expected. There is little you can do about poor quality or incomplete work and no assurance that you will get warranty coverage and after-sales service.

If you participate in the underground economy, you affect the government's ability to provide services such as health care, pensions and employment insurance. The CRA takes this problem seriously, and has over 1200 employees involved on identification, audit and enforcement initiatives aimed at addressing the underground economy."

For more information on this Taxpayer Alert, see the CRA web site at:
http://www.cra-arc.gc.ca/newsroom/alerts/2006/a060220-e.html