Fast food joint not reporting sales

[nlt76]

frickin scammers.

feel like squeeling on them. they ring food in maybe half the time. i always ask for a receipt when they try and pull that shit with me, but, so many other people giving them a tip in the form of pst/gst.

the thieves make a good chicken pad thai though.

 

[hamermill]

frickin scammers.

feel like squeeling on them. they ring food in maybe half the time. i always ask for a receipt when they try and pull that shit with me, but, so many other people giving them a tip in the form of pst/gst.

the thieves make a good chicken pad thai though.

Did you just discover this??? This is nothing new - there are computer POS systems designed to help in this... Been around for at least 20 years.

 

[ready2rock]

Yep. This is part of the reason that many persons start their own businesses - to hide income from the tax man

 

[tboy]

frickin scammers.

feel like squeeling on them. they ring food in maybe half the time. i always ask for a receipt when they try and pull that shit with me, but, so many other people giving them a tip in the form of pst/gst.

the thieves make a good chicken pad thai though.

and the problem with this is?????

The ONLY way many small businesses can remain in business is to cut corners somehow. Have you SEEN the commercial tax rate in this city? It's insane.......

Barring all that so I have to guess by this post you think that only very large corporations should be allowed to cheat the taxman and not the little independants?

But why haven't you reported any sp that you've seen? Do you see THEM allocate some of your "donation" to GST?

 

[Radio_Shack]

All Chinese do this. Everything is cash for not only food but all services as well...

 

[Tony321]

frickin scammers.

feel like squeeling on them. they ring food in maybe half the time. i always ask for a receipt when they try and pull that shit with me, but, so many other people giving them a tip in the form of pst/gst.

the thieves make a good chicken pad thai though.

If you are not happy, no one is focing you to buy from them.

Go eat at MacDonlads.

 

[moresex4me]

Duhh!!! Of course they do. If you had a cash business you'd do it as well. Tax is a cost just like anything else, and people limit their costs as much as possible, at least the smart business people do.

Ever pay for parking downtown? At those lots that still have an attendant and you pay cash? Do you really think they're claiming every dollar? Think again.

 

[double down]

LOL Tony

If you are not happy, no one is focing you to buy from them.

Go eat at MacDonlads.

I'm pretty sure it's McDonalds.

Hmmmmm

 

[james t kirk]

how is this news? more than half the small stores in Toronto will waive the pst/gst if you pay cash and take no receipt. Some will even give you discounts.

They don't waive shit.

They CHARGE you the PST and GST, but don't ring it in. In other words, they keep it. Every Variety Store (every one of them Chinese) in my area (High Park) does this I can assure you.

Buy a can of coke for a buck, they charge you the $1.13, but just drop the money in the till.

It's a scam, it should be reported, but I don't have the energy.

I think the original poster is upset that he was charged the tax, but they didn't ring it in, not that he paid cash and they let him off without paying the tax. While both are illegal, it's galling to pay the tax and not have it remitted to the government.

That's the issue I believe.

 

[Bearlythere]

I believe it was once pointed out the populace was to be considered overtaxed when people who would otherwise be law abiding would do anything to not pay taxes. After reading this thread, it is obvious, the City of Toronto is an overtaxed jurisdiction. No stores out here in the Shwa I have ventured into play these games....no matter what the ethnicity of the owners would be.

 

[5hummer]

I don't see anything wrong with it.

Think about what has to be deducted, PST/GST, CPI, Landlord, etc. etc.

 

[Toke]

they usually tell you upfront that if you pay cash they'll waive the tax and even give you a lower price but if you want to use debit or a credit card they will have to charge you for the tax.

but even in cases where they do give you a receipt they can just as easily make up receipts at the end of the day because the receipts they provide are so rudimentary there's no time stamp and descriptions of items bought are vague. Hell I can't tell what the hell I bought when I look at my own receipt sometimes.

It's also not fixed to specific groups of people. I went to body shop a few months ago and the owner (a white dude) not only said he would give me a discount if I paid cash but even gave me a fake receipt for the original amount owed.

I doubt they'd tell you unless you are a trusted regular. When I worked in restaurants and people would request a 'cash deal' in advance, I'd tell them that I can't say yes, but that if they wanted to pay in cash that I would try to work something out when the time comes.

That was 'wink-wink, nod-nod' for, 'Yes I will waive the tax if you pay in cash, but you don't get any paper trail and I will only agree to our agreement at the moment I receive the payment'.

It's common practice, however I do agree with the OP's position of having to pay the tax without it being remitted to the government. God forbid he left a tip.

We're over taxed anyway. Paycheck; taxed. Puchases; taxed. Used products (i.e. car); taxed. Education; taxed. Food; taxed. Just in the process of taxing our wages and the subsequent purchases (new and used) show that the government is not only double dipping, but sometimes triple and more.

 

[james t kirk]

I've never gone to a restaurant ever where the owner said, "if you pay cash, you don't have to pay the tax"

Ever, and I go to allot of restaurants.

Same with variety stores.

I have noticed that the Chinese run Variety Store owners never ring anything in. But they damn well charge the tax.

Redementary receipt is irrelvant because the till has its own receipt as well. If Revenue Canada audits them, they are expected to produe receipts. Same goes for remitting GST and PST. If they didn't ring it in, you can be assured that the GST and PST never gets remitted. (That's why in some places they don't bother with sales taxes and just go for property taxes. Harder to beat.)

There's an underground economy for sure - usually in Home Renovations more so than anything where it's, "pay me in cash, and I won't charge you the GST". Though, that said, I have a contractor friend (very good friend actually) who now refuses to that because it reduces his income on his books. It's hard enough for him being self employed to get a mortgage, but showing an income of 30 grand when it's actually 130 grand - it becomes impossible to get a mortgage, or a Line of Credit. As a result, he tells people who offer him cash that he doesn't care because he's still charging them the GST. Plus he was audited one time and they were looking at the amount of materials he bought verses what he billed and it didn't add up.

Also, only really stupid guys offer you the chance to pay cash. Usually, they wait for you to ask, "if I pay cash" because they'd be cooked if you worked for the gov't and reported them. If YOU offer to pay cash, they can always claim entrapment.

 

[Toke]

I've never gone to a restaurant ever where the owner said, "if you pay cash, you don't have to pay the tax"

Ever, and I go to allot of restaurants.

just to clear up the context in which I was referring to. It happened in situations in which people are booking larger events (i.e. baptisms, receptions, birthday dinners) where we are talking 25+ people and the cost is $40+ per person. They look at it as saving themselves upwards of $200.

 

[moresex4me]

I've been to a restaurant, as a regular and the owner was a friend of a friend and we get a different bill if we pay cash... just a slip with a number on it.

As to getting caught buying materials, dude you buy those with cash and your buddy is clear. Showing the income? You have to in order to get a mortgage, LOC, etc. but most banks know that $30K is probably twice that, and if you've been in business a long time, that gets easier to deal with as well.

Anyway, it happens, and if you can get a deal, why not?

 

[tboy]

I'm with James up there. I have to offset the cost of materials I've purchased and I would be hard pressed to show $20K in materials cost with only $5K in labour costs. The government ain't stupid!

More: the problem is we write off the cost of the materials off our taxable income anyways. So you're saying go out and EAT $5K in materials just so we can "hide" $5K in labour costs? It's a no win situation. If we claim the materials and the labour costs, at the end of the year our taxable income is negligable at best.

If you're self employed and you are set up right, your actual income at the end of the year is below the taxable level. I mean, without cheating that is. I live in my shop so 90% of that cost is written off, same as vehicle, tools, repairs, property tax etc etc.

 

[nlt76]

get out? you mean some business people will accept cash and give you a lower price - like no tax? wow! gee! holy!

duh! i'm talking about charging customers a price with tax and not paying the gov't the tax they just charged us. if they want to say up front, no tax discount if you pay cash - that's one thing.. since they'd just be screwing the gov't.

..otherwise why should i pay the price + tax?

..and if you check the CRA website you will notice that SP/MP transactions are tax free - unless you ask for MSOG.

 

[tboy]

get out? you mean some business people will accept cash and give you a lower price - like no tax? wow! gee! holy!

duh! i'm talking about charging customers a price with tax and not paying the gov't the tax they just charged us. if they want to say up front, no tax discount if you pay cash - that's one thing.. since they'd just be screwing the gov't.

..otherwise why should i pay the price + tax?

..and if you check the CRA website you will notice that SP/MP transactions are tax free - unless you ask for MSOG.

Not sure if you're being serious or not, but there are very very few services that are not subject to at least the GST (and when the new tax comes into play, PST as well....)