If I own business and one of my primary suppliers only accepts cash and doesn’t give receipts, are we in any guilty for doing business with him?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I own business and one of my primary suppliers only accepts cash and doesn’t give receipts, are we in any guilty for doing business with him?
I’m pretty sure he’s avoiding taxes himself. Unfortunately, we’re pretty dependent on this guys product right now and cannot shop elsewhere. We fully intend on paying taxes ourselves.
Asked on October 14, 2016 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
No, you are not: you are not responsible for whether or not another person or a business you do not control reports and pays taxes. The law requires him to pay taxes, no matter how he accepts payment (e.g. cash, check, credit card--it's all the same). You can do business with him on the assumption he will obey the tax law, the same way you can do businss with someone on the assumption they are not violating labor, workplace safety, or environmental law--then it's on him (and only on him) if he does not.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.