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by com 670 days ago
“Shrinkage” is the generic term I have heard for stock losses of all kinds in retail and distribution channels.

In many jurisdictions, cash payments can allow the retailer to avoid on-paying sales tax or VAT, as well as mark stock shrinkage as a loss for their own tax purposes.

Countering this would require very careful auditing of electronic toll records and paper receipt processes, which are in most cases trivial to evade if well-prepared.

And you can’t always be sure that the shrinkage - without the cash - is reported to the manager of the retailer by the person on the till, especially if an unofficial handwritten receipt is provided by the cashier.

I recall seeing a situation involving a very large champagne purchase on New Year’s Eve in cash for 25% off and a “till receipt problem”.