- in 2008 we had some “cash-deal” offers for the work. We didn’t accept any. For a driveway, I want some documentation and warranty, but there are many contractors and customers who will work out a deal that avoids or reduces GST, PST and income taxes.
- before today, we expected that contractors would be a bit hungrier for business this year and that we should be able to negotiate a good price.
- now we will need full documentation to satisfy the CRA. Contractors should will be busier and prices will go up. No cash discounts.
- the CRA will collect full GST and income tax on work that otherwise might have gone unreported, increasing revenue.
- unlike municipal infrastructure projects, our driveway project can proceed as soon as the frost is out. Skilled and unskilled labourers will get paid, pay taxes and spend their income (lots of it on gasoline and beer which flow more money into government coffers). The project won’t be held up for years with consultants’ studies and impact assessments or pad union leaders’ compensation packages.
- materials for our driveway will be sourced in Canada (oil for asphalt and gravel, mostly) bringing more jobs to Canadians and more tax revenue to the CRA.
- once we’ve drained a few thousand out of our bank account for the driveway we will be less inclined to spend spare cash for foreign travel that does not benefit the Canadian economy.
2009-01-27
full dislcosure
OK - we were planning to have our driveway rebuilt in 2009. Now we should be eligible for some sort of federal tax rebate. Some things to consider:
