Lack of tax revenues from illegal suites costs municipalities millions annually. Each illegal suite places a 43% increase in garbage and a 65% increase in water consumption for which the illegal suite owner pays nothing. The honest tax payers foot the bill instead.


To illustrate the industry wide problem we choose Victoria, British Columbia. In Victoria, based on data taken from our 2001 Canadian industry survey, there are about 25,000 illegal rental units in the area. The local cable service provider is losing over $14.8 million annually! For the municipality, a modest tax levy of only $250 a year ($20 a month), could generate new revenue streams totalling $6.3 million dollars annually.


At the current customer value, placing this market segment "on billing" for the cable service provider would increase the net value of their customer base by roughly $82.5 million.


With an average cable billing of $50 a month, and a sales or drop tax of 7%, the taxing authority would increase their annual revenues by $1,050,000


If this major "White Collar Crime" did not exist or the industry were able to curb the high rate of this crime, the gross value of just the Canadian cable industry would increase by $3.8 BILLION!

National Household Estimations for Canada - 1999

 

St. John''''s

Charlottetown Summerside

Halifax

Estimated number of households 1

59,090

21,620

133,240

Estimated Number of Illegal Suites2

11,818

4,324

22,648

Lost Annual Revenues

$7,090,800

$2,594,400

$13,588,800

       
 

Saint

Quebec

Montreal

Estimated number of households

49,900

272,670

1,340,370

Estimated Number of Illegal Suites

9,980

54,534

268,074

Lost Annual Revenues

$5,988,000

$32,720,400

$160,844,400

       
 

Ottawa (Ontario part)

Toronto

Winnipeg

Estimated number of households

307,020

1,604,190

242,380

Estimated Number of Illegal Suites

61,404

320,838

48,476

Lost Annual Revenues

$36,842,400

$192,502,800

$29,085,600

       
 

Regina

Saskatoon

Calgary

Estimated number of households

72,610

82,550

335,460

Estimated Number of Illegal Suites

14,522

16,510

67,092

Lost Annual Revenues

$8,713,200

$9,906,000

$40,255,200

       
 

Edmonton

Vancouver

Victoria

Estimated number of households

328,930

719,020

123,650

Estimated Number of Illegal Suites

65,786

143,804

24,730

Lost Annual Revenues

$39,471,600

$86,282,4000

$14,838,000

       
 

Whitehorse

Yellowknife

 

Estimated number of households

7,350

5,900

 

Estimated Number of Illegal Suites

1,470

1,180

 

Lost Annual Revenues

$882,000

$708,000

 
       
       
   

1 Data Source: Statistics Canada
2 Data Source: Bush-Waterhouse Communications (from appraisal data)


Approx. No. of Canadian Households = 5,705,950
Approx. No. of Illegal Suites = 1,141,190
Estimated Annual Cable Industry Losses = $684,714,000
Annual Loss in uncollected GST = $47,929,980

Loss in Total Canadian Cable Industry Value = $3.8 billion!
(based on current customer acquisition costs)
   
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