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- Sep 25, 2007
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- 201
Hi all,
An article from the December 5th edition of The Vancouver Sun by Peter Simpson, Chief Executive of The Greater Vancouver Home Builders` Association. If things don`t work out, those cheaper under-the-table cash deals can turn out to be very expensive. Excerpts:
If you think the underground cash economy is rampant now, just wait until the HST comes into play.
At least a third of all home renovation and improvement takes place in the underground economy. The cash deals are done under the table, and under the radar of governments at all levels.
Now before you start applauding the fact some folks are stickin` it to the man, consider this: The underground economy means governments are losing billions of dollars annually. Taxpayers -- you and I -- are picking up more than our share of the tab because of these cheats.
And homeowners are placing themselves at significant financial and emotional risk engaging in cash deals with contractors. If there is no contract that clearly spells out the role and responsibility of both the homeowner and contractor, there is no accountability, likely no permits or inspections, no warranty, no liability insurance if someone gets hurt, and no legal standing if the job goes sideways.
When HST is implemented, the absence of meaningful tax rebates from the federal and provincial governments will fuel an already burgeoning underground economy in home renovation, to the detriment of homeowners, play-by-the-book professional contractors and government at all levels. Mark my words.
http://www.vancouversun.com/life/decision+...7039/story.html
Keith
An article from the December 5th edition of The Vancouver Sun by Peter Simpson, Chief Executive of The Greater Vancouver Home Builders` Association. If things don`t work out, those cheaper under-the-table cash deals can turn out to be very expensive. Excerpts:
If you think the underground cash economy is rampant now, just wait until the HST comes into play.
At least a third of all home renovation and improvement takes place in the underground economy. The cash deals are done under the table, and under the radar of governments at all levels.
Now before you start applauding the fact some folks are stickin` it to the man, consider this: The underground economy means governments are losing billions of dollars annually. Taxpayers -- you and I -- are picking up more than our share of the tab because of these cheats.
And homeowners are placing themselves at significant financial and emotional risk engaging in cash deals with contractors. If there is no contract that clearly spells out the role and responsibility of both the homeowner and contractor, there is no accountability, likely no permits or inspections, no warranty, no liability insurance if someone gets hurt, and no legal standing if the job goes sideways.
When HST is implemented, the absence of meaningful tax rebates from the federal and provincial governments will fuel an already burgeoning underground economy in home renovation, to the detriment of homeowners, play-by-the-book professional contractors and government at all levels. Mark my words.
http://www.vancouversun.com/life/decision+...7039/story.html
Keith