Commission on the Reform of Ontario's Public Services

Recommendation 18-5: Review the adoption of government-authorized sales-recording
modules in certain sectors (e.g., food services) to address “zapper” software (zappers remove
a vendor’s record of sale).
The module would prevent businesses from deleting transactions to reduce taxes (installed
with success in Quebec and parts of Europe).
Recommendation 18-6: Develop a concept of self-certification of electronic point-of-sales
(ePOS) software. The self-certification is based on the principle of tax authorities developing
and publishing a set of requirements for accounting software and ePOS systems.
Recommendation 18-7: Develop a public awareness campaign on the impact of the
underground economy. For example, by using unregistered contractors or contractors who do
not issue receipts, there are risks of not obtaining a warranty for repairs, risks of not being able
to seek legal remedy for poor workmanship, and risks of liability for injuries or damages that
occur on a customer’s premises.
Recommendation 18-8: Create employee deeming provisions where businesses substitute
independent contractors for employees to avoid paying Ontario’s Employer Health Tax.
Recommendation 18-9: Establish a forum to discuss emerging issues and trends in
the underground economy as well as innovations and best practices for addressing them.
The forum should include representatives from various ministries, and federal and municipal
governments as well as industry associations. 2
Implementing these and other measures could yield the province more than $500 million
per year when fully phased in.
2 In December 2010, the Ministry of Labour’s Expert Panel on Occupational Health and Safety recommended a provincewide underground
economy strategy.
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