I recently came across a strange situation in Toronto. I purchased some high end items in Richmond Hill. The store clerk said I would pay no tax if I paid cash. I said no because I need to claim my tax back and run the expenses through my card for accounting purposes.

The clerk said okay and added on the taxes and processed the transaction on my card. I asked for a receipt for Canada Customs and before I knew it the store manager was there checking out the situation. The clerk wrote out a receipt by hand and gave it to me with CC receipt.

Later as I am getting together all my paperwork I realise that this store does not have a GST number on the receipt like the rest of my receipts. I have the following questions in my head:

Did I just pay tax to a merchant who has no intention of passing the money on to the Canadian Tax Authorities?

Will I get my tax money back when I send in receipt?

How common is this? Almost everywhere I saw there are signs in the door saying "Cash Only". This looks like blatant tax evasion by an entire merchant community.

I am most disturbed about this. In my opinion those who charge me extra for tax and do not themselves pay it to the government should be treated as criminals and convicted for tax fraud - jailed, hung and strung.

Dave - Japan



[This message has been edited by davistev (edited 12-29-2002).]