Thin end of the wedge

[octave]

Just getting back to the original subject, and I know many will disagree with me.    

 

I  am just having some work done on the outside of my house.  Our neighbour was going to have some work done, and we said, "We need that too" We suggested that they do our place at the same time. Because of this, we did not really get too involved as we normally would have.

The job finishes today, and I asked them when we would receive a bill.   "Got to be cash, mate" Apart from a mad scurry to the post office (we usually don't use cash and in any case would not keep this much lying around the house), it does raise many issues for me.

The original quote had an amount for GST. When I expressed surprise that they only take cash, the GST portion suddenly disappeared. This suggests to me that if I hadn't questioned it, they would have charged GST and not passed it on to the ATO.

Are they going to willingly give me a receipt? What if the repair turns out to be faulty?

Do they even have their own liability insurance?

Are they unfairly competing with businesses that take a more professional approach?

 

Had we been organising this ourselves, we would not have chosen these people, although the work does look good.

When people are told that they must pay cash, I think this leads them to believe they are actually getting the same job done cheaper; this may or may not be the case, but perhaps you shouldn't assume without comparing it to legit tradespeople.

When I was teaching music, I did get some of my pay in cash (although this was always a pain), but I certainly never would have NOT declared it. To me, this is like shoplifting, sure, you get something for nothing, but your fellow shoppers, or, in this case,  fellow taxpayers, are paying for it.

 

[facthunter]

The Bulk of the tax evasion is done legally by the RICH. Kerry Packer said it was OPTIONAL. GST gets it from people who may already be on an Aged Pension or disability. and NOT living very high on the Hog. With an ABN you don't Pay it. It's the TAX rich People Love. LOOK who introduced it and WANT to Increase it. Look where it is in the UK?.  A dead hand on everything and heaps of Paperwork for everybody. Nev

[octave]

I accept that tax evasion amongst the wealthy is far more costly to society.   If these particular tradies do all of their work cash in hand and therefore pay no or little income tax, isn't this unfare to nurses and teachers and other PAYE workers who pay taxes on their wages?

Edited 39 minutes ago by octave

[facthunter]

 Octave , I'm not disputing it would be unfair to PAYE People and others who obey the Law. The same if they were not Paying their workers the right Wages, or stealing the Materials used on your job

  They would be running serious risks if their Invoices don't tally up with what they claim to be Happening. Supply companies in the Main, don't do unrecorded transfers. It's not worth the risk. Nev

[octave]

8 minutes ago, facthunter said:

They would be running serious risks if their Invoices don't tally up with what they claim to be Happening.

I have no idea if they will even issue an invoice.  I didn't organise these people but the work is not exactly rocket science, and thus far, the work seems reasonable.  To me bending tax rules makes me wonder what other rules are being bent.  How many of us ask an electrician or a plumber if they are licensed or not?  To me, the whole handing over of a wad of cash immediately after a job is done just seems dodgy. I would much prefer an itemised account emailed or posted to me, so I can consider the work done and materials used before I pay.