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|
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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.
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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|
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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.
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