I started writing this blog in September, 2009. At that time, there was very little useful information about restaurant tax audits in Canada (or anywhere). In the 42 articles that I have written so far, I have tried to fill this gap with practical information geared towards restaurateurs. Based on the comments I’ve received from a number of readers, I think I have succeeded. There still isn’t much useful information about restaurant tax audits, other than what you will find in this blog. That’s a shame, but it keeps me motivated to continue helping as many restaurateurs as I can.
Posts Tagged ‘Canadian Restaurateur’
Posted in Taxes, tagged allowances, Audits, Canada Revenue Agency, Canadian Restaurateur, Customer comps, shrinkage allowance, spillage, tax auditors, tax audits, theft, tips and gratuities, zappers on July 10, 2012| Leave a Comment »
Posted in Canada Revenue Agency, GST, HST, Income taxes, Sales Tax, Taxes, tagged Audits, Canada Revenue Agency, Canadian Restaurateur, CRA, Customer comps, excise tax act, GST, harmonized sales tax, HST, Income tax, POS, Sales Tax, tax auditors, tax audits, Taxes, technology on June 20, 2012| 9 Comments »
I’ve written a couple of articles about Groupon on my sister blog, Canadian Restaurateur. This is part of a series that will cover accounting for Groupon certificates, setting up your Point of Sale (POS) system to properly track coupons and discounts, using QuickBooks to enter Groupon transactions, examining the tax treatment of Groupon certificates (this one), and finally, determining whether your restaurant should consider Groupon.
Most restaurateurs know they lose the cost of the pilfered product, but few understand that they may be responsible for the sales and income taxes (plus penalties and interest) that would have been incurred had the stolen product been sold. Significant tax liabilities often arise from sales (and income) tax audits of restaurants and bars. This can occur anytime purchased wine, beer and liquor is not sold, and one of the most common (and largest) causes of these items not being sold is theft and fraud.