Sheldon's Tax Tips #5

Cash and the Underground Economy

Sheldon’s Tax Tips #5

This is my brother Blaze he is always looking for a cash deal. I love him but he is not a licensed professional. Blaze is part of what CRA calls the “Underground Economy” aka moonlighting, working under the table and working for cash.

There are two types of cash transactions.

1. Purchasing goods or services at a legitimate business and receiving a receipt.

2. Purchasing goods or services without a receipt to avoid paying tax.

When you avoid paying tax you are considered part of the “Underground Economy”

Consumers & Businesses can learn more about who is at risk from here.

https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/tax-alert/about-underground-economy.html