An awful lot of that relates to technical breaches of Relevant Contracts Tax and VAT. Evasion as commonly understood is almost impossible in construction, except for small owner-commissioned extensions etc paid in cash by mutual agreement. Even there, the Home Renovation refund scheme has more or less removed the incentive to dodge VAT.The Revenue 2015 [broken link removed] cites a €51 million yield from audits and 'other interventions' into tax evasion in the construction sector, so it's not just the small cash businesses that are at it.
Consumers are the main drivers of tax evasion. "Will it be cheaper if we pay cash?"
Still it's easy to see why they resent paying VAT at a crazy 23% rate.
I don't know where or at what you work, but I heard it yesterday. It's very common.In fact, now as I think about it, I do not think I have ever heard of a customer asking a retailer or service provider to dodge paying the tax on a transaction, have you ?
Agree with that, but in truth I think most people resent paying any form of taxation.
Unlike other taxes, VAT is easily evaded, and such evasion is free of consequences if you're a consumer.
Absolutely none. The consequences fall totally on the supplier.I had thought it was the opposite.
Though I suppose if a carpenter does a job and asks for €200, does the customer have any liability to check that VAT was paid?
Very realistic example, Brendan.It isn't 1983 anymore.
lots of tax evaders could be crossed checked by auditing there suppliers ,
Sure this has been going on since the early 90s and such monitoring is now at an advanced and highly sophisticated level at this stage.
they are only interested in the big fish who are registered for vat and checking that they are not claiming more vat back than they should,
I agree with almost everything you say but there is a lot of smaller fish earning a tidy sum on the side ,
lots of tax evaders could be crossed checked by auditing there suppliers
You mean cash purchases, I presume? How are delivery dockets fiddled to accommodate this? How are product guarantees, warranties and returns handled on such goods? Have these supplies adequate facilities for handling and securing large volumes of cash? How do the suppliers account for the "missing" sales in their own accounts while maintaining their margins at the expected level?I believe many small traders only get invoiced by their suppliers for some of their supplies., the rest goes down as cash sales.
That's because in those places you're a consumer and you're paying mickey mouse amounts of money for small volumes of these supplies. What makes you so certain that a similar regime applies to their trade customers whose purchases will amount to a sizeable multiple of yours? Are all these guys sending couriers into places with large sums of cash?I have walked into catering suppliers and paid cash for catering boxes of burgers for barbeques at home. I have done the same in trade shops while doing DIY at home for electric cable, sockets etc, bought kitchen units the same way and car parts in motor factors etc
No one knows who I am or cares, once I have the cash it’s just another Cash Sale and what I do with the goods is of no interest to them.
I think tax evasion is alive and thriving, probably not in bigger businesses but certainly in smaller family or sole trader businesses across all industries.
Not signaling any one type of business in particular but using the fast food industry as an example, if 100 burgers are invoiced it is reasonable for the taxman to expect 100 burgers to be sold on to the public at €4 each or whatever, but often only 50 burgers are invoiced and the other 50 are paid for in cash, then the cash proceeds of the second 50 can go in the back pocket.
I believe many small traders only get invoiced by their suppliers for some of their supplies., the rest goes down as cash sales.
Not signaling any one type of business in particular but using the fast food industry as an example, if 100 burgers are invoiced it is reasonable for the taxman to expect 100 burgers to be sold on to the public at €4 each or whatever, but often only 50 burgers are invoiced and the other 50 are paid for in cash, then the cash proceeds of the second 50 can go in the back pocket.
Torblednam Don't forget PRSI evasion also@cremeegg
There is very little input VAT on the majority of the purchases for resale of a fast food type business. The exception being the soft drinks.
Whereas all the (declared) fast food sales will be liable to VAT.
But even leaving that error in your reasoning aside, even taking a business where the resale purchases are VATable at the same rate as the onward supply, you're overlooking the fact that there will always be both VAT and Income tax on the final sale. So the person underdeclaring both their purchases and their sales, evades VAT X gross margin, AND income tax on the (net of VAT) gross margin...
Torblednam Don't forget PRSI evasion also
If you are selling more than 9,375 burgers a year you are liable for VAT, and if you buy your burgers for cash then you cannot claim the VAT back which is a much bigger disadvantage that paying income tax on the profit.
I have walked into catering suppliers and paid cash for catering boxes of burgers for barbeques at home. I have done the same in trade shops while doing DIY at home for electric cable, sockets etc, bought kitchen units the same way and car parts in motor factors etc.
I think tax evasion is alive and thriving, probably not in bigger businesses but certainly in smaller family or sole trader businesses across all industries.
You are displaying your lack of knowledge here: burgers, as with most food ingredients, have zero VAT as a purchase. Whilst I've no doubt that there are some operations who do what you're suggesting, in practice, it would be very hard to operate without a very significant risk of getting caught. You'd need a whole supply chain to be complicit. You'd have to ring some sales up through whatever POS system you’re running, but not others. You'd need staff to cooperate. Your (declared) turnover would not have to be too far off comparable businesses to avoid raising a flag with Revenue (they can and do monitor such things in particular sectors). It's hard enough to keep one set of books without having to keep two parallel ones. You might get away with it for a while, but the chances are you'd end up being audited, either because your own returns had been flagged, or one through an audit of one of your suppliers. I'm not saying it doesn't happen - it clearly does, as published Revenue lists prove - but I would not underestimate the difficulty in doing as you suggest and getting away with it for any length.
The interesting point about this thread is of course that it's an evidence free zone, so I guess my opinion is as valid as anything here. For what it's worth, I think it likely the only sector where evasion is likely to be significant is where small operators are selling services to end consumers. Anyone part of a supply chain would find it very difficult to keep it up for any length of time. Of course, the really big evaders are likely to be those in the murky place where aggressive avoidance meets evasion.
There is quite a lot of diesel laundering going on in 2012 cost black market est at 861 million euro 1 in every 8 liters of diesel is illegal not to mention petrol stretching these are no small time operators and they need lots of retailers to make it work,Google black market and retail crime 'costing Ireland 861 million euro a year and have a read,
There is quite a lot of diesel laundering going on in 2012 cost black market est at 861 million euro 1 in every 8 liters of diesel is illegal not to mention petrol stretching these are no small time operators and they need lots of retailers to make it work,Google black market and retail crime 'costing Ireland 861 million euro a year and have a read,
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