# Is it legal for a company to insist on Cash Only



## Gtec (12 Aug 2010)

I recently dealt with a company in the Tourism sector that had advertised on it’s website that “Cards are not accepted for payment” so when I arrived I produced a cheque book only to be informed that no, we don’t take anything but cash. 



In terms of numbers we are talking about €200ish for the transaction I was conducting which would be middle of the range for the transactions dealt with (my back of the envelope calculations indicate that this business is turning over at a minimum €600,000 per annum). 



Now maybe I am a cynic, but to me a company that flat refuses anything but Cash is hiding something from the tax man, particularly as a receipt for my purchase was not forthcoming, and when I insisted on getting one I was given a hand written receipt, not out of a duplicate book, and with only the name of the company on the top, no phone number, no company reg number etc.

  So my question is, is it legal for a company in Ireland to insist on cash as the ONLY means of paying? And am I too cynical in my view of the fact that to demand such automatically implies tax evasion?

  Gtec


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## j26 (12 Aug 2010)

Absolutely.

Maybe they're just sick of rubberised cheques.


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## Paddy199 (12 Aug 2010)

Yes


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## Graham_07 (12 Aug 2010)

Gtec said:


> And am I too cynical in my view of the fact that to demand such automatically implies tax evasion?
> 
> Gtec



Yes you are.


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## burner (12 Aug 2010)

Off the top of my head pubs are a classic example of something that only take cash.


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## Magpie (12 Aug 2010)

burner said:


> Off the top of my head pubs are a classic example of something that only take cash.



I don't know many pubs that don't take laser or credit cards.


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## luckyman (12 Aug 2010)

who pays for cheques these days 2010..... come on like! paying business invoices etc i can understand but for personal banking its a bit backwards these days


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## Tipptop (12 Aug 2010)

Magpie said:


> I don't know many pubs that don't take laser or credit cards.



Visit rural Ireland, if they don't serve food they don't have a Visa/Lazer machine


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## j26 (12 Aug 2010)

On a (loosely) related note, can a business legally refuse large denomination notes - 200 and 500?


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## RonanC (12 Aug 2010)

j26 said:


> On a (loosely) related note, can a business legally refuse large denomination notes - 200 and 500?


 
Yes


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## Gtec (13 Aug 2010)

Fair enough, must just be my cynical mind! I suppose running my own business completely above board, and having had way to many interactions with "business" (mostly in the construction trade) who will usually assume "cash" prices and insist on adding VAT if you produce a cheque book I assume that Cash automatically means "I'll decide how much I made when I do my Tax return"!

As to the pub I agree, but they are largely dealing in "small" transactions not 100's per transaction, and the purchase side of the pub business is much more regulated i.e. they purchase their supplies from large companies using invoices and bank transfers etc, so it is much harder to "hide" the cash side.

Thanks
Gtec


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## Graham_07 (13 Aug 2010)

Gtec said:


> As to the pub I agree, but they are largely dealing in "small" transactions not 100's per transaction, and the purchase side of the pub business is much more regulated i.e. they purchase their supplies from large companies using invoices and bank transfers etc, so it is much harder to "hide" the cash side.
> 
> Thanks
> Gtec



Historically ( and still today but perhaps to a lesser extent) the pub trade had many ways of under declaring income.  Not always successfully I might add when one takes a look at the number of publicans on Revenue defaulters lists over the years. Spirits were purchased for cash, tills rang up "no sales" numerous times, staff were paid "cash in hand" etc. I've seen quite a few of these situations over the years. Even today, I know that publicans can purchase kegs from off-licences and given the gross profit potential, there is still quite a lot of room there for under declaration. 

Relating to construction I have a client a sub-contractor in construction. He is regularly asked if he takes cash for work. He says yes and he does. He then  lodges it, writes it in his cash book and pays the VAT at 13.5% included in what he receives.


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## demoivre (13 Aug 2010)

Graham_07 said:


> Relating to construction I have a client a sub-contractor in construction. He is regularly asked if he takes cash for work. He says yes and he does. He then  lodges *some of it*, writes *this bit* in his cash book and pays the VAT at 13.5% included in what he receives.



Fixed that for you.


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## Graham_07 (13 Aug 2010)

demoivre said:


> Fixed that for you.



It's Friday so I'll let you off with that.


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## Complainer (16 Aug 2010)

I've been in two restaurants over the past two weeks where 'the credit card machine is not working' - Coincidence? Or avoidance of the bank's cut of credit card payments?


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## Joe Q Public (16 Aug 2010)

Can happen. The only place I found that happening all the time was in Russia. And they wanted US dollars and not roubles.


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## Bluebells (16 Aug 2010)

Complainer said:


> I've been in two restaurants over the past two weeks where 'the credit card machine is not working' - Coincidence? Or avoidance of the bank's cut of credit card payments?



A significant number of New York restaurants are now only taking cash. They are seeking to avoid CC transaction fees.


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## mcaul (20 Aug 2010)

Complainer said:


> I've been in two restaurants over the past two weeks where 'the credit card machine is not working' - Coincidence? Or avoidance of the bank's cut of credit card payments?


 
it can happen and the helpdesks are only open Monday to Friday. Ulster bank machines have had a few niggles recently - pain in the a**

in any case most commissions are only at 1.5%

Though the iother way of looking at it, they are over their overdraft limit and money that goes intot he bank account isn't available for other things, and these days many suppiers do not give credit.


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