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.
Posts Tagged ‘GST’
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 »
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 restaurants and bars use shot glasses or portion control pourers to accurately measure the amount of liquor that goes into cocktails, mixed drinks and shots. Meticulously training bartenders and monitoring pouring, you’re fairly confident that your pouring is fairly accurate, if not “perfect”. Even if it is, your establishment will be over-pouring all of your liquor drinks by at least 4%!
Recently, the Canadian Restaurant and Foodservices Association (CRFA) published three calculators to help restaurateurs determine the effect on the new HST, effective July 1, 2010, on their prices. The calculators cover wine, spirits and beer. I’ve included the links, below. You can read more and find a discussion on their use and potential effects on your menu pricing in July, here.
Posted in Canada Revenue Agency, GST, HST, Income taxes, Ministry of Revenue, PST, Sales Tax, Taxes, tagged Audits, CRA, GST, HST, Income tax, Ministry of Revenue, POS, PST, RST, Sales Tax, tax evasion, zappers on February 7, 2010| Leave a Comment »
Despite what has been published in the press and disclosed by the CRA and the Ministry of Revenue Quebec (MRQ), the use of zappers has not reached epidemic proportions in the restaurant industry. Zappers have been around since the mid-1990s, though most of the usage seems to have been confined to Quebec. In fact, the vast majority of the convictions for sales tax evasion have occurred in Quebec. For background on the use and abuse of zappers, please read this, this, and this. The unfortunate thing about all of this attention is that it may draw our attention away from a far larger threat to our operations. The indirect audit approach.
Posted in Canada Revenue Agency, GST, HST, Income taxes, Ministry of Revenue, PST, Sales Tax, Taxes, tagged Audits, CRA, GST, POS, PST, RST, Sales Tax, tax evasion, zappers on November 14, 2009| 7 Comments »
This post concerns the use of zappers in restaurant operations. It is not a “how to” guide in their “proper” use, nor is it, in any way, an endorsement of their use. In fact, if you are even thinking of employing a zapper to fill your pockets with cash stop and read this post. It is not worth the risk. You will get caught, eventually, and here’s why.
Posted in Canada Revenue Agency, GST, HST, Income taxes, Ministry of Revenue, PST, Sales Tax, Taxes, tagged allowances, Audits, CRA, Customer comps, GST, Income tax, Liquor, over-pouring, PST, RST, Sales Mix, Sales Tax on November 6, 2009| 1 Comment »
So far, I’ve discussed the POS system and how to maintain it for accurate reporting, how to document your sales mix for all audit periods, and the importance of maintaining an accurate history of your menu prices. Taken together, these bookkeeping tasks are crucial in helping the restaurateur determine, and properly support, accurate weighted average prices. This is a crucial component of the mark-up calculation performed during a typical audit.
Now we’ll take a look at the actual cost of the alcoholic beverages purchased for sale.
Posted in Canada Revenue Agency, GST, HST, Income taxes, Ministry of Revenue, PST, Sales Tax, Taxes, tagged Audits, CRA, GST, Liquor, POS, PST, Sales Mix, Sales Tax on November 5, 2009| Leave a Comment »
This is the second post in the series on auditproofing your restaurant from an unfair audit. Most restaurants and bars with weak internal controls (almost all independent establishments), will be audited by the Canada Revenue Agency (CRA) or a provincial tax authority using an indirect audit approach. In most cases, this approach will be the mark-up method, which seeks to project the sales level that was likely to have been generated based on the amount of alcoholic beverages purchased by the establishment. As we have seen in other posts, this audit method involves making a number of assumptions about the operation. Determining what these assumptions should be, can be quite complicated.