I was at a function the other night and we were talking about having work done around the house, such as cleaning, bush trimming, painting etc. A common theme was that a lot of trades people are saying they will do the job only if you pay them in cash.
I guess this means they will pocket the cash and not declare it for tax purposes or pay GST.
So, will you pay cash for getting odd jobs done around the home knowing that this is probably helping people avoid tax?
Or doesn't it matter to you as long as the job gets done for a cheaper rate than that charged by those who follow the rules?
I found this example to be of interest. A friend employed a person to do some painting on the basis that the painter would charge in cash $60 per hour for the work done. The painter spent 8 hours doing the job and said that will cost $552. When my friend said wouldn't it be $480 (8 hours @ $60 per hour) the painter said yes it's $480 plus GST of course!