that there is an element of trust and therefore they want a receipt for that If

That there is an element of trust and therefore they

This preview shows page 153 - 155 out of 241 pages.

that there is an element of trust, and therefore they want a receipt for that. If they feel that you are doing something dodgy, it flows over. I have been approached by people who want to do a cash job and I refused because I asked them how it would help them anyway because I still have to produce an invoice. With the invoice I also include the GST on it which I can claim it back.”(E2) However, the tax practitioners sample perceived that cash jobs were widely practiced amongst SMEs especially in home maintenance type industries, where no documentation was required. They acknowledged the difficulty in combating cash jobs because of the public support for this practice. The public’s support for cash jobs is cost saving for the purchaser, and GST and income tax evasion for the seller: “Small businesses do participate in cash jobs. At the end of the day, the onus is on the small businesses to disclose the cash jobs themselves. If you don’t disclose and there is no paper transaction, then nobody knows. It all comes down to the person who is discharging their money for services whether they are prepared to forego the documentation. If they are prepared to do that, then we can’t stop them. As long as there is a willing buyer and seller, there is no paper trail.”(TP2) “Anyone that deals with the public at their homes has more opportunity to deal with cash jobs. It would be harder if you take the car to the garage. They would find it difficult to dodge. It is those where they go to the public’s homes where they do not have to answer to anyone other than themselves. They have no documentation or recording and when the customers do not ask for a receipt, you find
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140 these businesses could get away with dodging tax payments. Anyone related to the maintenance, e.g. builders, plumbers and electricians are more prone to problems with tax compliance.” (TP1) Though tax practitioners felt cash jobs may be more rampant than what the European sample believed to have happened, this may indicate the tolerance of cash jobs by some ethnic groups. This study found the Asian group to be more accepting and tolerant towards cash jobs than the European sample. However, it could also suggest that the Asian operators were more upfront with their views of cash jobs than the Europeans because the researcher was perceived to be part of their in-group, given her Asian ethnicity. On the other hand, the Europeans may not admit to participate in cash jobs because they viewed the activity as morally wrong and they feared adverse repercussions. This points to the sensitivity of the tax compliance topic and that people tend to represent themselves in a favourable light (Hessing et al., 1988). 8.4.2 Europeans’ perceptions of tax payments Most Europeans in this sample acknowledged the need to pay taxes, but they were most dissatisfied with how taxes were spent, compared to other ethnic groups: “I have no problem paying taxes to the government. I know that the tax is important for infrastructure etc. but some of the present taxes are not used for the right reason.”(E8)
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  • Fall '16
  • tax compliance, SME Operators

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