Disproving Audit Assumptions

During a typical audit, the tax auditor interviews the taxpayer about the business operations and various factors that influence sales, such as portion standards, selling prices, theft, spillage, own-use and over-pouring.  If the auditor exercises sound judgment, the taxpayer’s assertions will be considered prima facie evidence that the assumptions are reasonable in the circumstances.  These [...]

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U.S. Tax Audits Draw Anger

So, what do we care about U.S. tax audits?  Plenty.  What happens in the U.S. (and abroad) tends to happen in Canada, too. Recently, the New York State Department of Taxation and Finance hired 300 additional auditors in an effort to generate an additional $200 million of sales tax revenue.  While they say they’re just [...]

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Perfect Pour = Unreported Sales (and Taxes)?

Huh?  Do you mean that if I never over-pour drinks, my establishment can still be accused of under-reporting my sales (and taxes) during an audit?  That can’t be right!  Can it?  Unfortunately, it IS true for almost every restaurant and bar in Canada!  Today’s post explains how this happens and what you can do about it. Most [...]

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