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 ‘tips and gratuities’
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, Income taxes, Restaurant Operations, Taxes, tagged Canada Revenue Agency, CRA, Income tax, personal income tax, Restaurant Operations, Source Deductions, Taxes, tips and gratuities on May 29, 2012| 3 Comments »
If your restaurant pools or shares tips, charges automatic gratuities, or receives a tip-out “to the house”, this article could save you thousands of dollars.
If you’re like most restaurateurs, you probably think that the Canada Revenue Agency’s only concern about tips and gratuities is that servers report them on their personal income tax returns. While the CRA is concerned about this, now, they are even more interested in restaurants that fail to report certain types of tips.
The CRA’s policy on tips and gratuities can be found here. The rest of this article may shock you.