REVscene - Vancouver Automotive Forum

accordpoop · 01-07-2012, 06:59 PM

My iPhone case has a slot for a credit card, debit card and my drivers license. I have a folded $50 bill slipped into 1 of the slots for times like this. I havent used that $50 for at least a year now. I use by debit/cc for everything I buy and i TRY to stay away fom these "cash only" joints...but that's just me.

taylor192 · 01-07-2012, 07:47 PM

Quote:

Originally Posted by Hehe

There could be several reasons why a place doesn't take CC and it's not always for tax evasion.

No, its always for tax evasion. The costs are pennies compared to other business expenses.

trollface · 01-07-2012, 07:51 PM

Quote:

Originally Posted by taylor192

No, its always for tax evasion. The costs are pennies compared to other business expenses.

Yeah... no.

A small mom and pop shop can rack up over $700 in CC expenses each month very easy depending on the nature of the business. However you want to look at it, $700 saved is $700 saved.

You have to look at this from the perspective of a business owner. That $700 can be spent on new equipment for the store. Either boost sales or reduce your expenses.

This is a great way to do it if the nature of your business can pull it off.

If a customer buys 4 dollars of stuff from you with a CC, do you know where your margin just went?

Please let me know what business expenses are as you call it "pennies" so 100x more than CC transaction expenses in the small business context here in Richmond.

type-j · 01-07-2012, 08:11 PM

I wonder how they would of felt if it was the other way around and the restaurant said to them "sorry, but we are a dollar short with your change....its only a dollar"
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butter_sashimi · 01-07-2012, 08:59 PM

^ Then I will take 1 dollar worth of salmon sashimi to go with me, sir. Given that you agree.

Everymans · 01-07-2012, 09:07 PM

Do companies have to pay to have interac machines? Or is it because they're shady characters and wanna keep everything under the table via cash.

taylor192 · 01-07-2012, 09:11 PM

Quote:

Originally Posted by trollface

Yeah... no.

A small mom and pop shop can rack up over $700 in CC expenses each month very easy depending on the nature of the business. However you want to look at it, $700 saved is $700 saved.

Yeah... yes, dumbass.

$700 is the tax on $5K of business income, and most restaurants make that in a single day. By taking only cash they can easily hide more than $5K a month and save that $700 and more.

Your stupid math doesn't work on those of us that actually know the business. Go troll elsewhere.

trollface · 01-07-2012, 09:15 PM

Quote:

Originally Posted by Everymans

Do companies have to pay to have interac machines? Or is it because they're shady characters and wanna keep everything under the table via cash.

The machines are supplied by many companies. MOST let you use them for free and they make money off you per-transaction (%). The cut also depends on volume in sales dollars. If you go over XXX amount in a month, you pay a different % cut. Some companies will charge you for the fancier machines that are bla bla bla wireless, bla bla bla faster so on so on.

Don't underestimate the actual cost of these CC transactions. At the end of the month, you look at your expenses in your books and you would feel sick seeing a $700 dollar expense for credit cards when your rent is only 4k (location depending). You look for ways to drive down your expenses and this is one of the easiest places to do it with minimal impact to the operations of your small company with few employees. Look at your monthly net loss/profit and start adding that $700 back in there and the decision becomes very clear to many small business owners. It's not easy to make a buck.

The assumption that this expense is insignificant is 100% false. I promise you that.

trollface · 01-07-2012, 09:24 PM

Sry, double posted. Pc went nuts

trollface · 01-07-2012, 09:26 PM

Quote:

Originally Posted by taylor192

Yeah... yes, dumbass.

$700 is the tax on $5K of business income, and most restaurants make that in a single day. By taking only cash they can easily hide more than $5K a month and save that $700 and more.

Your stupid math doesn't work on those of us that actually know the business. Go troll elsewhere.

First, nice assumption and the use of name-calling when someone disagrees with you.

So your blanket statement is true eh? There is no possibility WHAT SO EVER that taking cash is legitimate way to drive down your operating expenses? Your 5k is what? Gross revenues? Also, let's talk apples to apples here. The businesses we're talking about taking cash only are not pulling in 5k a day selling dumplings, bro.

Let's say you rock as small restaurant owner and pull in 5k revenues, you're so bad-ass that your net profit 1,500 a day(30% profit margin lol). Industry average for around 2005 was 4-7%.

Mastercard charges 2.05% (Yes that's a real number) currently on the amount of transaction. Let's say that you're lucky, and only 50% are CC. That's what? 50 bucks a day?

50 bucks a day and 1,500 a month or 18k a year. Yeah, you're right. That's not much at all for a mom and pop. I'm not "trolling" with my stupid math. I honestly don't care as I have no stake in the outcome of this disagreement. However, if you're angry at my "troll math", please direct your anger towards these 2008 income statements for restaurants in Steveston on my thumb-drive. I think that's a more fitting place for it.

spyker · 01-07-2012, 10:30 PM

Quote:

Originally Posted by trollface

Yeah... no.

Um....yes.

I will explain it real simple for you to understand about the preferred "cash only" method of some restaurants.

let's say a restaurant makes 100 food sales in a day,well since there is no paper trail for cash,all they would have to delcare is 40 of the sales for that day,thus pocketing the rest and not paying tax on it.

Ever wonder why 90% of those Vietnamese Pho' restaurants are " cash only".

I have a friend that is a tax auditor for Revenue Canada,he told me he's shut down more "cash only" restaurants for that reason than any other reason.

Nightwalker · 01-07-2012, 10:32 PM

None of the taxis where I live take cards

I paid under the full in another city recently since it was all the cash I had (didn't want my card)

Hard to remember to have cash when you drank it all at the bar.

Quote:

Originally Posted by spyker

I have a friend that is a tax auditor for Revenue Canada,he told me he's shut down more "cash only" restaurants for that reason than any other reason.

lol, I didn't think a tax auditor could shut down a restaurant for a reason other than tax fraud?

Volvoman · 01-07-2012, 10:49 PM

When my sister got married, she had her reception at a Chinese restaurant. The restaurant manager told her if she paid cash, she wouldn't be charged sales tax. Keep in mind it was a big reception that costed $15,000 (30 tables of 10)

Something to keep in mind...

trollface · 01-07-2012, 10:50 PM

Quote:

Originally Posted by spyker

Um....yes.

I will explain it real simple for you to understand about the preferred "cash only" method of some restaurants.

let's say a restaurant makes 100 food sales in a day,well since there is no paper trail for cash,all they would have to delcare is 40 of the sales for that day,thus pocketing the rest and not paying tax on it.

Ever wonder why 90% of those Vietnamese Pho' restaurants are " cash only".

I have a friend that is a tax auditor for Revenue Canada,he told me he's shut down more "cash only" restaurants for that reason than any other reason.

I understand exactly how it works. I'm simply stating the blanketing of all businesses under this is unjust and unfounded when there are legitimate reasons why a business owner may choose to do this. You're pretty much saying all Viet business owners are criminals. Sounds kinnda crappy, eh?

spyker · 01-07-2012, 10:55 PM

Quote:

Originally Posted by Nightwalker

lol, I didn't think a tax auditor could shut down a restaurant for a reason other than tax fraud?

There are many reasons for getting shut down and also many ways to cheat the tax system,some are very sophisticated and some are dumb,but the dumbest way to get caught is hanging a "cash only" sign on the front door.

spyker · 01-07-2012, 11:03 PM

Quote:

Originally Posted by trollface

You're pretty much saying all Viet business owners are criminals. Sounds kinnda crappy, eh?

Now you're putting words in my mouth,I never stated or even hinted that all Viet business owners are criminals.

However,the majority are just fronts for their drug laundering.

blee123 · 01-07-2012, 11:11 PM

the chinese noodle place inside the Empire Centre food court ( same mall as where Hon's noodle house used to be) charges HST on all its dishes but doesnt give its customers any sort of receipt. The owners also go on trips around the world twice a year prob using the tax money they took from the customers without paying back to the government.

I also hate those chinese places who charges you tax but gives u a hand written (scribbly) receipt.

shawn79 · 01-08-2012, 12:51 AM

when i eat out and im short a buck or two, i put whatever i have and walk out. (usually just short tips)

unit · 01-08-2012, 01:34 AM

^wow dude.. you know in some restaurants the servers have to pay out some of the tip?
so if you tip them like 5% they might have served you for free.
no server would ever work for their base wage (usually minimum) without tips... if you've ever worked in a restaurant then you know why.

shawn79 · 01-08-2012, 01:41 AM

I have worked in a restaurant before. I only did it twice ever because i didnt know the restaurant was cash only in richmond. I took all the change from my car and i was missing about $2.25...

Sky_High · 01-08-2012, 02:10 AM

Quote:

Originally Posted by shawn79

when i eat out and im short a buck or two, i put whatever i have and walk out. (usually just short tips)

Quote:

Originally Posted by shawn79

I have worked in a restaurant before. I only did it twice ever because i didnt know the restaurant was cash only in richmond. I took all the change from my car and i was missing about $2.25...

Now we know who OP was describing at Gyo-O few days ago...

danizer · 01-08-2012, 02:51 AM

Quote:

Originally Posted by Nightwalker

lol, I didn't think a tax auditor could shut down a restaurant for a reason other than tax fraud?

i think he means hes shut down more cash only restaurants than their plastic accepting counterparts because of tax fraud

taylor192 · 01-08-2012, 07:35 AM

Quote:

Originally Posted by trollface

You're pretty much saying all Viet business owners are criminals. Sounds kinnda crappy, eh?

The truth hurts.

Its even worse when they charge the tax and just pocket that too.

drunkrussian · 01-08-2012, 09:15 AM

Quote:

Originally Posted by trollface

Yeah... no.

A small mom and pop shop can rack up over $700 in CC expenses each month very easy depending on the nature of the business. However you want to look at it, $700 saved is $700 saved.

You have to look at this from the perspective of a business owner. That $700 can be spent on new equipment for the store. Either boost sales or reduce your expenses.

This is a great way to do it if the nature of your business can pull it off.

If a customer buys 4 dollars of stuff from you with a CC, do you know where your margin just went?

Please let me know what business expenses are as you call it "pennies" so 100x more than CC transaction expenses in the small business context here in Richmond.

tons of ppl in this thread stated they avoid cash only places. a lotta the customers in these shops are new ones. if they offered credit card business would increase and cover the alleged $700, while brining in new business they wouldnt have otherwise. this leads to long term business and referrals as well
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drunkrussian · 01-08-2012, 09:18 AM

Quote:

Originally Posted by Nightwalker

None of the taxis where I live take cards

I paid under the full in another city recently since it was all the cash I had (didn't want my card)

Hard to remember to have cash when you drank it all at the bar.

lol, I didn't think a tax auditor could shut down a restaurant for a reason other than tax fraud?

i heard bonnys taxi is a big laundering operation so not surprised
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