Cash jobs ethical/legal

S

sanjayag

Hi guys/gals,
Recently, I'm taking quotes from the tradies for the jobs like concreting, timber work, landscaping etc for the extension of my PPOR. Some of them mentioned about the cash jobs at a cheaper cost. Also, I have read many times on this forum, people asking/telling to use cash for saving money.
I gather, cash job means no income tax and/or GST on that part of income. Am I correct? If yes, is it legal/ethical?

Sanjay
 
i don't approve of cash trading - for like $50 yeah but anything more i would prefer a reciept.

I have a friend who does this nightclub organzing thing and i know it's a cash business. just feel he is pretty risky doing what he is doing. one day the ATO would catchup on him. if someone can pay cash for a BMW M3 160K - that's just insane.

even donations have receipts and are tax-deductible.
 
It depends on whether you want to a) pay more and get a tax deduction or b) pay less and don't claim it.

I would pay cash if it gets the job done quickly and cheaply. Nothing unethical about it because you're not cheating the tax office - the tradesman is.
 
Do hybrid....

Pay cash, and ask for a hand written recipt for personal records. If someone is going to be dishonest to the ATO its their problem not yours. If they are ripping off the tax office, make sure they aint ripping you off. If its cash price, id want it to be 30% cheaper to cover my non claimable amount and the 10% for the GST so Id want it half price to be same as paying normally.... Unless they are ripping you too.

I always want recipts personally, and dont go into dodgy guys, I can tell I see dodgy people sometimes, but turn an eye because its their problem if they get caught not mine. I got better things to worry about and do it right first time.
 
Geez, I've heard that apparently some businesses don't put all income through the books but they do put all the expenses and ahve wondered how they balance it to not show 10 to 1 Expenses to Income come tax time... I thought that was risky enough... but to go out & pay $160k cash for a car ? :confused:
 
We know someone who got pinged by the ATO for buying a merc (he operated a restaurant). If you're going to have dirty money - then you have to be prepared to lay low all the time
 
Cash IS legal tender.
If you don't know what that means, go look it up a teach yourself something.
What the receiver of the cash does with is none of your business or concern.
Your "gathering" has nothing to do with any truth but resentment of others.
And I've never encountered a tradie who does not give a receipt.
 
Piston Broke said:
And I've never encountered a tradie who does not give a receipt.
Click to expand...
I certainly have. The issue I have with that is that if something then goes wrong, you have no recourse & no proof that the tradie even did the job. Guess it depends what the job is. With some things perhaps it's not really important.
 
No tax claim as for PPOR

Nathan said:
Do hybrid....

Pay cash, and ask for a hand written recipt for personal records. If someone is going to be dishonest to the ATO its their problem not yours. If they are ripping off the tax office, make sure they aint ripping you off. If its cash price, id want it to be 30% cheaper to cover my non claimable amount and the 10% for the GST so Id want it half price to be same as paying normally.... Unless they are ripping you too.

I always want recipts personally, and dont go into dodgy guys, I can tell I see dodgy people sometimes, but turn an eye because its their problem if they get caught not mine. I got better things to worry about and do it right first time.
Click to expand...

As I told in my OP, this is my PPOR, so I can't claim tax on expenses or depreciation. That leaves saving of 10% GST, if go for the cash. Tradies also know that and their communication is: The cost will be $700 for this job in cash or $770 if you want a receipt. Now the question arise....when you get the hand written receipt, it doesn't show any GST paid. Is it not a bearing on you becoz you knew they are not paying GST for that job?:confused:
 
No, because as a consumer (since it's your PPOR) you have to pay the GST and you can't claim it back anyway. So it makes no difference.
 
This invoice must have the gst component, but the rest is really a matter of price negotiation.
You can just say "I'll give you $700 and I will need a receipt".
And gst/no gst talk should be met with "what you do with the money is your bizness and not my concern"

If you dont want to pay the price, then try someone else.
 
hi sanjayag

Cash jobs are both legal and ethical for the owner and tradesman, however if the tradesman doesn`t pay the GST or tax on the income his behaviour is neither legal or ethical.

Cheers

Pete
 
Piston Broke said:
Well as someone who posts here as if they were knowledgeable about this investment stuff,
what is not ethical about or legal about taking legal tender as payment?
Click to expand...

I know what Perp meant.


When a tradie comes round and quotes you $1000 + GST.

Another tradie says, tell ya what, I'll do it on a Saturday for $700, no books no reciept ok ?

I tend to agree with you... $700 is $700... not your gfault he doenst; want to pay his GST or income tx, you've paid what they charged,m what they do with it is their business.

But is there an ethical dilmea if you are literally & obvioulsy aware that the reason the price is cheper than normal, is because they are doing a "cashie" and not putting it through their books at all ?
 
Piston Broke said:
what is not ethical about or legal about taking legal tender as payment?
Click to expand...
There is nothing illegal about paying a bill in cash. :)

There is a lot that's illegal and unethical about accepting a "lower price for cash because I wouldn't have any tax or GST expenses". The offer inherently involves the commission of a crime, and by accepting that offer, you're facilitating a crime.

As long as I get an invoice, with GST listed, I'm not responsible for what happens after that. The tradie could still cheat on tax, but I wouldn't be a participant in the fraud.

But if I accept no invoice, or an invoice with no GST listed, which the tradie emphasises is unable to be used to obtain GST credits, then I'm also participating in the commission of a crime, and I'm unwilling to put myself in that position. :)

If you are, good for you. sanjayag was seeking opinions, I've given mine. As has been said, they're like bums, we all have one. ;)
 
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