Is tax evasion still endemic in Ireland?
- Thread starter Howitzer
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z107
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The reality of the situation is that it's hard to get a tradesperson, and many of them simply wont entertain anything other than cash.
Once you've got someone to actually show up, are you going to frighten them away with a cheque?
I disagree with this. I'm most certainly paying full whack! It's up to the tradesperson to correctly declare their earnings and pay the appropriate taxes. I'd never feel like I getting some kind of 'bargain'.
Once you've got someone to actually show up, are you going to frighten them away with a cheque?
I disagree with this. I'm most certainly paying full whack! It's up to the tradesperson to correctly declare their earnings and pay the appropriate taxes. I'd never feel like I getting some kind of 'bargain'.
RainyDay said:
Okay, I'll rephrase it....
If you haven't taken advantage of a bit of a bargain by paying in cash, you're duly absolved of any hypocrisy...!!!!
I'm not sure whats to disagree with - what if a tradesperson provides a service to you and tells you it'll cost €200, but he could do it for €180 in cash? He's effectively saying this - if you pay me cash, I won't have to pay €40/50 in tax, so this way you get €20 knocked off the price and he gets €20/30 in his back pocket.
If you refuse to pay in cash and choose to pay the full whack, then fair enough. But if you accept the cash price, you really shouldn't be surprised to think that this guy is fiddling his taxes, nor should you believe that you're not taking advantage of his willingness to do so.
For the record folks, I'm not defending the cash economy or anything like that. I'm just calling it as I see it.
Z
z107
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The way I look at this scenario is that the service is only worth €180 to start with. The tradesperson is using this as a tactic so you'll only pay in cash. If you still wanted to pay with a cheque, I'd expect that the tradesperson would probably not want to know.
ubiquitous
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umop3p!sdn said:
Do remember that there is a very good reason why many tradesmen, shops etc refuse to accept cheques - the risk of cheques bouncing.
There is nothing wrong either with situations where shops etc give small discounts for cash as opposed to credit card payment, where there would otherwise be a credit card charge to the retailer.
The bottom line is that there is nothing wrong with cash payment or receipts provided a receipt is issued to the customer.
umop3p!sdn said:
I agree exactly with what you say, except you have to ask why he wants to be paid in cash? There are two different costs of doing the job for the supplier - the cost of doing it above-board and the cost of doing it under the radar.
If you're getting a cash price and a receipt for the service/goods, then fair enough, you're absolutely spot on (as is ubiquitous). But if you're not getting a receipt, the provider is costing the job differently which is why its only worth €180 now - because he doesn't have the extra cost of paying tax on his earnings.
To be fair, it's only an ethical distinction for us as purchaser. Legally we have no interest in how a businessman puts together his taxes - if he fiddles his taxes, it's his risk or his "reward". As cash purchasers, we facilitate this, we benefit by it, though we have no responsibility for it in the eyes of the law.
It's only whether we ourselves recognise the role we play in the transaction.
ubiquitous
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Purple said:
Again this is a generalisation - many small businesses are legally exempt from VAT and as such would not have a VAT number.
ubiquitous
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Howitzer said:
Again not necessarily - for example a plumber, electrician or other tradesman in PAYE employment can earn another €600 per week (or thereabouts), every week in the year, from other (self-employment) work before they are obliged to register for VAT. This is relatively commonplace.