Cash Can Be Taxing

@p1kef1sh (45640)
July 25, 2012 12:27am CST
A British Government Minister said yesterday that paying for goods and services in cash is immoral if the intention is to avoid the payment of tax. The inference being that cash transactions are all about tax avoidance. Apart from the fact that it is the recipient that pays the tax here, it seems to me that it is wrong to make the assumption that just because cash is used in payment, that tax will be avoided. However and strictly hypothetically of course, would you pay cash knowing that you will get a "tax free" deal that way?
5 people like this
8 responses
@Opal26 (17690)
• United States
25 Jul 12
Hi p1key! First of all ! I think that it is obvious that most people would pay cash (well, I know I would), if I could just to not incure the already outrageous fees that the credit card companies charge to begin with. And of course, I would and do take advantage of any service or store that gives me a tax-free option to pay by cash! I take a car service to the airport and they give an "extra discount" for "cash customers". I don't care what their reason is, the point is they do and I save and whatever! I can't say that there are any other places or cases that I experience that, but I sure wish there were more! And of course we do know that there is nothing that is really free!
4 people like this
@LadyMarissa (12161)
• United States
25 Jul 12
Leslie!!! The car service probably gives you the cash discount not to avoid taxes, but to avoid those same outrageous fees the credit card company charges them also. Gas stations here will give you 5 cents a gallon discount if you pay cash or use a debit card because the credit card company is charging them 6% of the total charged. Then they charge you 18% for using their card & we wonder why it's so expensive to buy anything. So you are doing the car service a favor by paying with cash & they should give you a reduced rate for doing so!!!
@BarBaraPrz (21069)
• St. Catharines, Ontario
25 Jul 12
Exactly!
@p1kef1sh (45640)
25 Jul 12
My view is that I pay my taxes and what others do with the money that I give them for their services etc is their business. I don't ask and don't expect them to tell!
@LadyMarissa (12161)
• United States
25 Jul 12
p1key, the conspiracy theorists here have been saying every since I can remember that the government was going to force us to used Federal cards to hold our money & we'll have to swipe it to buy anything we need. That way they can keep up with where we travel & what we buy so they can determine if or when we might try to overthrow the government. The general population scoffed at their ideas & said they were crazy. As I get older & look back over my life, I've noticed a pattern of events that prepares us for the next step toward what the governments want us to believe. The corporations are in bed with the government to create the required scenario to lead to the events that make it happen. I see the government issued IDs & debit cards coming into play sooner than I would like to see it happen!!! What better way to get it started than to convince people that cash is now evil & allows the criminal elements to flourish by labeling anybody paying by cash as an immoral & evil person??? Bank debit cards are the beginning of the process also. And I for one love using my debit card!!! It has become such a convenience that I've almost forgotten how to use cash!!! If the general population falls into it, then you can control those who disagree by labeling them as immoral & evil or unpatriotic. A few years ago our courts ruled that something the government had done was illegal & ordered a refund to every citizen affected. One day I had a deposit just show up in my account. Since I didn't recognize it, I called the bank to inquire & was told not to worry as I'd be receiving a letter of explanation shortly. Sure enough I did receive the letter within the week. As happy as I was to suddenly have more funds in my account than I had anticipated, I was concerned as I had changed banks & accounts about 4 times during the referenced transgression & my mailing address had changed too. Even though I was happy to receive the money, I was concerned that I had been tracked down via the banking system to where they were sure it was me!!! Yet, they can't locate a deadbeat dad & get him to support his child!!! But then that's a different discussion!!!
2 people like this
@p1kef1sh (45640)
25 Jul 12
We have the same conspiracy theorists here. However, I prefer cash still. But the debit card has it's uses. No doubt about that.
@pumpkinjam (5800)
• United Kingdom
25 Jul 12
I'm trying to work out how paying cash for something could possibly be a way of avoiding tax. As you said, the recipient pays the tax. Well, there is VAT on almost everything so, whether you pay cash or not, there is always some sort of tax to be paid. We all pay tax over and over again on the same things but that's another discussion! If paying by cash was a way to avoid paying tax then I should expect most people would do so. I believe that is what the young folks call a "no-brainer". Personally, I prefer to pay cash for things because it's easier to keep track. Then again, I don't really make large enough purchases for any tax avoidance to be relevant!
2 people like this
@p1kef1sh (45640)
25 Jul 12
I am with you on using cash. I try to do that for anything under £50.
1 person likes this
• San Leandro, California
25 Jul 12
I see where he's coming from and I can understand why it would be bad to avoid tax but personally, I will try to buy something tax free if possible. I'm pretty sure most everyone would do so too. Now-a-days being a penny pincher isn't the worst idea but I can see how it can be harmful in this situation.
2 people like this
@p1kef1sh (45640)
25 Jul 12
I think that you are right. Of course nobody wants to avoid paying tax (LOL) but it is good to get things cheaper.
2 people like this
@BarBaraPrz (21069)
• St. Catharines, Ontario
25 Jul 12
Some people seem to think paying "cash" is the same as paying "under the table", meaning no records are kept. Maybe that was what the minister was thinking when he made his statement.
1 person likes this
@p1kef1sh (45640)
25 Jul 12
Maybe. I think that he didn't think before he opened his mouth.
1 person likes this
@BarBaraPrz (21069)
• St. Catharines, Ontario
25 Jul 12
That's almost always the case...
@Hatley (164468)
• Garden Grove, California
25 Jul 12
pikefish hi here the taxes are already in the prices you pay cash or credit or debit card so noway are you avoiding paying the blasted taxes . They see to it nobody gets anything free here lol lol.So we do not have a tax fee deal at all.
@RawBill1 (8542)
• Gold Coast, Australia
26 Jul 12
Oh yeah, I will definitely pay cash in order to get something tax free. Still we are never getting anything completely tax free as there are always plenty of other taxes built into the price of goods that we purchase. We are usually paying tax on tax with most things. That is the immoral part I reckon, so I will happily avoid paying more of it. But that does not mean in any way that whenever I pay with cash that I get a tax free discount. Hardly ever happens with products, sometimes it does with services such as labour from tradesmen though.
@p1kef1sh (45640)
26 Jul 12
My understanding is that the offence is committed if we deliberately avoid paying tax. However one can legally evade the paying of tax and there is an entire profession called accountancy that specialises in that subject! I find it better not to ask the question. I offer cash the price is suggested I accept or decline and the job gets done. Happiness all around!
@RawBill1 (8542)
• Gold Coast, Australia
26 Jul 12
Another good way to avoid paying income tax is to loan your business money and then when you pay yourself each week, you are effectively paying back the loan to yourself and reducing income.
@peavey (16866)
• United States
25 Jul 12
I have a feeling that this sentiment is just a first step to doing away with cash altogether. What better way to keep track of people? Nope, I'm not a "conspiracy nut," but doesn't it make sense? They don't know what we're buying or selling if we pay cash, but if we pay with a credit card, debit card, gift card or check, believe me, they know. Paying with cash has little to do with cheating on paying taxes. People who will cheat by paying in cash will cheat by other means, too.
@p1kef1sh (45640)
25 Jul 12
Agreed. Cards are convenient but they are not the be all and end all.