Can I file a lawsuit against the owner of a house that owns me money if he has been paying me under the table to avoid the HST payments?
Firstly, a contract can be verbal or written. If you had entered into verbal contract and had agreed to get paid in cash, you could file a claim in Small Claims Court for compensation. Also, make sure you have evidence such as: photographs of work done, emails or text messages to prove your case.
Hi Jon
If you have a Registered HST Number but verbally agreed to be paid a straight hourly
rate for cash. Both you and the home owner could be guilty of Tax evasion. There are many good " Para-legals " out there that only specialize in Small Claims. I would try to get a meeting with one and see if you have a good chance. ( There much cheaper then lawyers ) .Good luck
First of all I hope you are paying your HST otherwise don't even think about pursuing a legal case. Second if you are going to sue them try and start the process before your 45 day period for placing a Lien on there property is up. Cash deals can be problematic and you need to calculate if the legal cost will surpase what this client owes you. Anyhow I wish you luck, there are so many bad clients out there and we as contractors are always get all the bad press.
I am worried that the court will find out that HST is not being paid by the owner and that can lead to other problems.
Is that something that would be talked about in court?
Thank you all in advance for your answers.
If you avoid taxes. The court will find and revenue too. Lien the house. If you can. And wait.
Search the TrustedPros directory and discover the best contractors in your area.
Find your home service pro