Totally agree with your statements
The UE is any legal business activity that is unreported or under-reported for tax purposes. This can include failing to file returns or omitting an entire business activity, also referred to as “moonlighting” or working “off the books.” The UE also includes under-reporting income received, such as “skimming” a portion of business income, bartering, or failing to report a portion of employment income such as tips and gratuities. There are many other names used to describe the UE, including the shadow economy, the cash economy, and the unobserved economy.
Think about it…
Operating in cash and failing to keep records does not make you immune to taxes. If your lifestyle is not in line with the income you report, and you cannot explain the difference, the CRA can assess taxes based on indirect or alternate methods of calculating your income.
Evading taxes is illegal and can result in criminal convictions leading to fines and jail time in addition to any taxes and penalties owing under the Income Tax Act and Excise Tax Act.
http://www.cra-arc.gc.ca/gncy/lrt/lrn-mr-eng.html