Less sales taxes, less moonlighting

Less sales tax, less moonlighting

BETTING À DAY

Budget after budget, all the finance ministers who succeeded one another complained, with good reason, of the tax losses caused by the underground economy with its adepts of undeclared work.  

Whether in Quebec City or Ottawa, they may well refine the initiatives of the action plans they have put in place to ensure tax fairness and facilitate tax compliance. tax obligations by taxpayers, the underground economy is still flourishing! In Quebec alone, it is estimated at nearly $17 billion. 

I am looking forward to the day when the Ministers of Finance will ask themselves the following question in particular: will taxes are too high? 

To ask the question is to answer it: YES!  

In Quebec, I remind you that the governments of Quebec and Ottawa take a “rating” of 15% on all goods , taxable goods and services, namely 10% provincial QST and 5% federal GST. And as you know, there are products that are subject to double taxation while said sales taxes are added to other taxes.  

Being charged 15% sales tax, whether on renovation work, landscaping services, repair services (plumbing, car, etc.), cleaning services… it makes the bill soar where many people have no remorse for avoiding them by doing business with undeclared workers.  

SOLUTIONS 

If governments agreed to significantly reduce their sales taxes, say by half (with a 5% QST and a 2.5% GST), many taxpayers would think twice before doing business with undeclared workers.   

Another solution that I believe would be effective in combating the underground economy is to offer taxpayers a tax credit on sales taxes paid in certain key labor sectors black market, such as construction, renovation, landscaping services, car mechanics.  

THE COMPLICES  

Of course, if the underground economy is so flourishing, it is because a very large number of citizens become “accomplices” of undeclared workers by agreeing to obtain services (or products) without, in particular, having to pay damn sales taxes, GST and QST.  

It's a “give and take”: like no invoice from suppliers, no taxes to pay for customers.&nbsp ; 

With the coming into force of a tax credit for sales taxes, taxpayers would require an invoice in order to benefit from it. 

INVOICE REQUIRED  

The existence of an invoice would force the service provider to declare its income. And by the same token, to pay taxes.  

In the end, it is the governments that should come out on top since the additional income from taxes and duties would undoubtedly exceed the tax credits for taxes. 

To the credit of customers who have no remorse when they manage to avoid sales tax, knowing that their service providers work at the black, it must be said that many of them are fed up with seeing the governments of Quebec and Ottawa spending mountains of taxes without improving government services.  

Less sales tax, less moonlighting