# Check HST number some contractors pocket the money



## lonewolf (Jun 12, 2012)

Contractor does work charges for work plus HST, Does not supply HST number or gives phoney number then pockets the HST.


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## RBull (Jan 20, 2013)

Check how?


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## none (Jan 15, 2013)

Buy McDonalds hamburger.

Gets hamburger but doesn't have pickles.

McDonalds pockets pickle money.


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## CalgaryPotato (Mar 7, 2015)

Is there any liability as the person buying a service if the contractor doesn't pay the GST?

I don't believe there is, and if there isn't it's their risk, not mine. Same as if they don't declare the service on their income tax.


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## CalgaryPotato (Mar 7, 2015)

McDonalds hamburger without pickles? That is like leaving off the meat.... but worse!


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## OurBigFatWallet (Jan 20, 2014)

CalgaryPotato said:


> Is there any liability as the person buying a service if the contractor doesn't pay the GST?
> 
> I don't believe there is, and if there isn't it's their risk, not mine. Same as if they don't declare the service on their income tax.


No liability for the consumer who purchases the service, but a huge tax liability for the contractor who doesn't claim the applicable taxes collected. My guess is if they aren't claiming the taxes they also aren't claiming the sale so the entire transaction is 'under the table'

If you're ever curious about whether they claim it, ask them what their GST number is. Their answer to that question is a good indicator


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## PrairieGal (Apr 2, 2011)

The GST/HST number is supposed to be on the invoice. I would not pay it unless it was. There is a CRA registry where you can check the GST number if you suspect it to be phoney. http://www.cra-arc.gc.ca/gsthstregistry/

I have seen small businesses (usually one person operations) that were fraudulently charging GST without being registered.


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## uptoolate (Oct 9, 2011)

Because it's always a good idea to piss off your contractor...


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## lonewolf (Jun 12, 2012)

If the company makes under 30,000 a year in Ontario ( rest of Canada ?) the company does not pay HST. If you think a company is not making 30,000 in a year & they charge HST major red flag the company is ripping you off.


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## Ihatetaxes (May 5, 2010)

I have caught several small businesses charging HST without following protocol of having the HST registration number on their invoice. There is a lot of HST fraud out there and my business has charged and remitted millions of it so it's something I look out for primarily with sole proprietors of small business.


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## Ihatetaxes (May 5, 2010)

PrairieGal said:


> The GST/HST number is supposed to be on the invoice. I would not pay it unless it was. There is a CRA registry where you can check the GST number if you suspect it to be phoney. http://www.cra-arc.gc.ca/gsthstregistry/
> 
> I have seen small businesses (usually one person operations) that were fraudulently charging GST without being registered.


Helpful, thanks for the link!


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