OTTAWA - A new poll commissioned by the taxman suggests half of Canadians are ready to cheat with under-the-table cash payments.
The survey conducted for the Canada Revenue Agency found only 49 per cent of people aren't likely to cheat.
The others were open to cutting corners, usually by paying cash for goods and services.
However, almost all are reluctant to fudge on their actual tax returns, preferring under-the-table deals to dodge taxes.
The survey didn't say how much is lost to tax cheats, but in July, Statistics Canada estimated that the underground economy in Canada was worth as much as $36 billion in 2008, a 90-per-cent increase over 1992.
At the time of the StatsCan release, the revenue agency said it used "a mix of outreach, education, and communications, as well as enforcement and audit actions to combat" the underground economy.
"The CRA plans on continuing its efforts to combat the underground economy. It continues to be a high priority, and the CRA will use the study's findings to further improve its tools and activities."
The newly released poll by Phoenix Strategic Perspectives Inc. was conducted Jan. 29-Feb. 28 this year. The survey sample of 3,884 people gives it a margin of error of plus or minus 1.9 percentage points, 19 times out of 20.
The report divided respondents into six categories, according to their attitudes.
The 31 per cent called "law abiders" and 18 per cent dubbed "altruistic compliers" are low risks to fudge on taxes. The former are likely to be women, over 65, less educated and retired. The latter tend to be age 45-64, married, working full time, university-educated and with household incomes of $100,000 plus.
The other four groups, of about 12-15 per cent each, were more open to cheating.
One group rationalizes cheating. They feel the tax system is unfair. Another group doesn't think tax dodging is risky. A third think they already pay too much in taxes and look for a chance to pay cash and dodge the tax collector.
The last group, about 13 per cent of respondents, are called "outlaws." They're willing to cheat, don't think it's a big deal and tend to believe that most people feel the same way. This group tends to be male, under 30 and self-employed.
"The outlaws are the least likely to articulate traditional values and among the most likely to feel that control over their lives lies elsewhere," the study said.
The $140,000 report offered few prescriptions to remedy the situation. For example, it said focusing on penalties is most likely to be ineffective against those most likely to cheat.
It also conceded that since the survey relied on people to admit to wrongdoing, the likelihood of tax cheating may actually be higher than the results indicated.
Catherine Swift, president of the Canadian Federation of Independent Business, scoffed at the study.
"I just don't know why they waste our money in this way," she said.
"There's no surprising revelations here. There have been other studies done on underground economy activity, tax cheats or whatever you want to call it. Big deal."
Swift said there are many reasons people cheat. They see taxes as too high, they see government wasting tax money and in hard times, they may simply be trying to make ends meet.
Even the study's "outlaws" are hardly a surprise, she added.
"They're young guys who are probably a little marginal, at least at the moment, and they're not seeing taxes as a high priority in their lives. It's all common sense.
"I have no idea what the utility is of piddling away $140,000 on this study. I really don't. Big waste of money."
A spokesman for the Canada Revenue Agency was not immediately available for comment.