Treasury warns islanders over their cash-in-hand transactions

TREASURY and Resources have reminded taxpayers to keep clear and accurate records when receiving payments in cash.

The department said that while it was not illegal to make transactions in cash, those doing so to evade tax would be subject to penalties and prosecution in more serious cases.

'The Compliance and Investigation Unit is becoming more active and anyone evading tax now runs a greater risk of discovery and punishment,' it said.

UK Treasury Minister David Gauke, pictured, claimed last month that it was 'morally wrong' to pay tradesmen in cash in the hope of avoiding tax.

Treasury and Resources warned islanders against making cash payments in return for a discount if they believed the recipient would not declare the receipt on their tax return.