Quote:
Originally Posted by puckluck2
How is not paying someone the GST paying someone under the table? Having a GST number isn't always necessary to have a business and get paid. Just because you don't collect GST, doesn't mean you work under the table. Nice little rant at the end that had nothing to do with my post.
Withholding money because a business doesn't have a GST number is for the company's own benefit and trying to twist it into a "government tax collector hero" is lame.
so please try to answer my question without going on a patented pylon rant.
How does someone not collecting GST equate to tax evasion?
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We may not get along on these forums, but I really do not believe you are as dense as your post suggests.
The entire premise of being payed 'off the books' is to not have to declare revenue. Be it personal income, or sales tax. Maybe Locke can expand on it, but I believe, a company can recover the GST paid if they do not exceed $30,000/yr in revenue. However, if they do not collect it, once they exceed $30,000 they must pay it retroactively. Why would you not collect GST under that set of rules? Just collect the damn thing and you have nothing to worry about. Also a large company contracting a subcontractor doesn't care if he has to pay the GST or not in regards to their company ledger. It makes no difference as it would never go in a profit or loss column. It is static, and it just has to be paid. It may as well not exist, as long as the company is not cheating the system, and not remitting it back to the government.
At the end of the day, there is ZERO reason, to not collect it if you are running a
legitimate business. And anyone not collecting it, usually would be, and should be suspect that they are cheating the system both personally, and corporately. And why would you want to do business with a crooked company?
Now I ask you, give me one reason, that you shouldn't follow the rules set by the CRA.