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Cash: Do you use it to avoid tax?

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With less than a month to go before the 13 per cent harmonized sales tax is introduced in Ontario, there are signs that consumers are turning to cash-only transactions to beat the tax.

"We have about 20 estimators out here in the field and we're getting various reports of contractors whom are offering cash deals and this sort of thing in an effort to drum up business and to offer some sort of appeal to avoid paying the taxes," roofing contractor Craig Bennett told CBC News.

He said the situation is so serious in his industry that it's causing a crash in prices.

Ontario's Ministry of Revenue is aware of the growing problem and is countering it with a chilling message to consumers.
"There are going to be risks if you decide to pay cash," ministry spokesman Scott Blodgett said in an interview with CBC News, "No warranty, no recourse for poor services or workmanship and the biggest one the added risk of liability if an injury takes place on your property."

Read more:

Have you participated in the underground economy by paying in cash to avoid tax? Have you ever been burned by doing so? Take our poll.

(This poll is not scientific. It is based on readers' votes.)

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