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I run a construction business and I have close relatives who refuse my services because I don't take payments "under the table." Their reasoning is that I don't need to pay taxes and they get a discount. Win-win - except for that the entire risk of legal consequences is on me and secondly it's exactly because of people who do this that many of my customers have unrealistic expectations of how much it costs to hire a contractor. The dude doing it for 30€/hr is not paying taxes on that.
Not in construction, but I dont think I've ever seen a friend who ran their own business and did this, ever succeeded in the long run. taking payments under the table I mean. or paying staff for that matter. its a sign that someone is bush league.