by Nancy Gardiner
Northern News Services

NNSL (Sep 17/97) - "We're not here to shake the bushes," says Henry Leszczynski, underground economy co-ordinator for the Edmonton office of Revenue Canada.

He's in Yellowknife this week along with a team to promote public awareness of the underground economy and its affects on legitimate businesses -- those who comply with Revenue Canada requirements.

Nationally, areas under high non-compliance are targeted for increased audit coverage -- construction, home renovation, auto sales and repairs (backyard mechanics), hospitality such as hotels, bars and restaurants, jewelry trade and other service sectors.

Randy Mann, assistant director of verification and enforcement with Revenue Canada, says there are legal and illegal businesses involved in an underground economy. For legitimate businesses, that can include under-reporting of sales, skimming and moonlighting. On the other side, for example, there's illegal smuggling or selling illegal drugs.

"There's an element of "willfullness" in an underground economy, he explains.

Six Revenue Canada people, three teams of two each, are going door-to-door in Yellowknife. They are asking businesses if they are encountering problems competing with the underground economy, if they've filed tax returns and are up to date.

Whereas a legitimate business pays all the costs of running a business, such as business licences, Workers' Compensation and taxes, to name a few, it can be difficult for those who comply to compete with those who aren't paying the same operating costs.

"It's an unfair playing field," says Leszczynski. "Businesses want a level playing field. If you don't have it, you can't complete. So we're trying to educate the compliant ones that it's not a victimless crime."

Yellowknife is the third community visited within the jurisdiction of Northern and Central Alberta and the NWT, under this underground economy program, says Ron Quinn, chief of public affairs for Revenue Canada. Previously Camrose and Grande Prairie were visited, he says.

Nationally, there's been about 140 community visits since this program started in 1993. There have been other community visits in the past on an ongoing basis for various reasons too.

Ottawa estimates there's $23 billion in underground trade going on in Canada.