Cash jobs ethical/legal

[jaycee]

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.

Perhaps if you'd started / qualified your reply with "in my opinion....", it would have read alittle less as if you were making a statement

 

[ianvestor]

In my opinion, anything posted on the internet should be automatically assumed to be the author's opinion unless otherwise stated.

 

[Perp]

And some of them stink

LOL

Perhaps if you'd started / qualified your reply with "in my opinion....", it would have read alittle less as if you were making a statement

I usually do make it clear, I guess in this instance it seemed pretty obvious that it was a grey area, and thus anything that anybody offered in response was just their opinion.

But you're correct, because if the tradesman tells you that they intend to commit a crime by not paying GST and/or income tax, then accepting their "cash price" is illegal - no grey about it!

If they just say "$1,000, $700 for cash", you can pretend that you're an innocent party if you want, but you're just kidding yourself. What plausible and legal explanation could there be for such a discount?

 

[kathryn d]

I tend to look at not receiving a receipt a bit different.
If I pay cash,don't get a receipt, what is to stop the tradie from taking me to small claims court ? He ends of getting paid twice.

I have no problem paying cash, as long as i get a receipt. I understand not wanting to accept a cheque.

 

[jaycee]

LOL

I usually do make it clear, I guess in this instance it seemed pretty obvious that it was a grey area, and thus anything that anybody offered in response was just their opinion.

But you're correct, because if the tradesman tells you that they intend to commit a crime by not paying GST and/or income tax, then accepting their "cash price" is illegal - no grey about it!

If they just say "$1,000, $700 for cash", you can pretend that you're an innocent party if you want, but you're just kidding yourself. What plausible and legal explanation could there be for such a discount?[/QUOTE]

That type of offer has actually never been made to me

 

[coastymike]

Having worked on around 10 offshore voluntary disclosures I can assure you that the resources of the ato are impressive and the data matching capabilities very good.

I have recently worked on a matter where after searching land title records and rta records a please explain letter was sent because it did not correlate with the income declared. The matter is currently being resolved but there will be a substantial liability.

People are also being caught by the dob in line. All it takes is one person to dob you in and it goes into the computer system and then the data matching commences. For the ato it doesn't matter of it takes 5 years to expose the person as if fraud or evasion is involved they can go back as far as they like. And with penalties and interest accruing their entire wealth could be destroyed.

 

[craigb]

i have done a 65k cash extension it went in the bank just like any other payment , as far as a discount , i offer they have them a mcas as happy meals ,
If the tradie is dishonest on his own personal finance , will they be honest in your bathroom reno , or extension ? you have got to ask your self that one ????

For me dishonesty is dishonesty, their is no segration , a lie is a lie dispite the severity of it , IMOP, that is and if i am the only honest builder in the world so be it i welcome the challange ?

 

[ianvestor]

If they just say "$1,000, $700 for cash", you can pretend that you're an innocent party if you want, but you're just kidding yourself. What plausible and legal explanation could there be for such a discount?

Speed? Cheques and even bank transfers are still in the dark ages.

 

[Rolf Latham]

If the tradie is dishonest on his own personal finance , will they be honest in your bathroom reno , or extension ? you have got to ask your self that one ????

That is possibly THE best question to ask.

ta
rolf

 

[Wunderbar]

Cheating the government is different from cheating a client.

 

[Perp]

Cheating the government is different from cheating a client.

I know that many people think it is, but ethically, there's no difference.

 

[Rolf Latham]

Cheating the government is different from cheating a client.

true, id say cheat a client long term and you may just get away with it, the tax man however................

If we take the "cheating the gov is ok" mindset to the next level 2 things are possible

1. The responseability an individual has is simply shifted to somewhere else in society, IE, someone else has to pick up the slack generated ( and this doesnt just apply to money, but to many things)

2. Deep and "accepted" Corruption at many levels of government and society, including the judicial system, the process of "democracy", and limited opportunity to the "haves".

Deep changes in society ( positive or negative ) ALWAYS start with one person.

Hey, I dont argue that government can be run better, the tax system improved etc, but shirking one's responseability from the system while benefitting from it isnt going to improve that.

ta
rolf

 

[Amadio]

Cheating the government is different from cheating a client.

No it's not.

The government is us.

 

[Perp]

Deep changes in society ( positive or negative ) ALWAYS start with one person.

Hey, I dont argue that government can be run better, the tax system improved etc, but shirking one's responseability from the system while benefitting from it isnt going to improve that.

Kudos, Rolf.

The same goes for ripping off large companies, who many also seem to think are fair game. The shareholders of those companies are probably in all your friends' and families' and fellow citizens' superannuation funds.

 

[craigb]

Theives tend to get caught, because they are not smart enough to do it any other way, I was burgled in july last year , very personal experience , i knew it was my x partner in buisiness , i knew that he had somone do it , and two months later i found some dumb ***'s id card , using FB and other networks ? i now know who he is where he lives and how he is linked to my x-buisiness partner, The police are on it As is Victems of crime support , and i will take this heigher, failing that i will tell the theif the other told of the story and also in reverse , and let them sort it beetween themselves ,
SORRY OFF TOPIC , had to vent , My point dumb asses need to cheat , the customers, the gov and others , i am no dumb ***, so i don't cheat. simple !

 

[Wunderbar]

I think the moral high ground is getting a bit crowded. Only do things you can get away with.

 

[Kinnon Bell]

Wow. I think I'd rather be standing on the moral high ground with a clear conscience than constantly looking over my shoulder waiting for the authorities to catch up with me.

 

[Wunderbar]

As Kerry Packer said, don't tip them, it's not like they do a good job with your money anyway

 

[weg]

My husband often tells clients he'll give a discount for cash on completion, prior to giving them their 7 day account (with the non discount figure being the original agreed quote).

The reason being is 7 day accounts can often turn into 14 or 30 day accounts, or more - sometimes after a series of part payments and reminders.

He likes this because cash doesn't bounce and he doesn't have to chase money.

I wonder if it's this that people sometimes mistake for 'unethical' cash.

He also gives a reciept after accepting cash with a discount, but still pays tax and GST.

 

[Rolf Latham]

My husband often tells clients he'll give a discount for cash on completion, prior to giving them their 7 day account (with the non discount figure being the original agreed quote).

The reason being is 7 day accounts can often turn into 14 or 30 day accounts, or more - sometimes after a series of part payments and reminders.

He likes this because cash doesn't bounce and he doesn't have to chase money.

I wonder if it's this that people sometimes mistake for 'unethical' cash.

He also gives a reciept after accepting cash with a discount, but still pays tax and GST.

Hi Weg

I dont think there is ANYTHING wrong with that at all, it makes good business sense.

Creditors stretching things is a normal business practice/.................Im still chasing a deent size lender payment that was due to to our business on Dec 5 2010........ and no its not some bodgy, its a big 4.

ta
rolf