Winnipeg Restauranteurs Taste Tax Evasion Fines

On May 1, the Canada Revenue Agency (CRA) announced that two corporations and the director of one plead guilty to tax evasion charges in the Provincial Court of Manitoba. The fines totaled a hefty $731,986.

The Foody Goody Chinese Buffet at 1320 Ellice Avenue was one of the culprits. It pleaded guilty to evading federal income tax of just over $82,000 and unreported GST of $62,581 for the 2006-2008 taxation years. Further, under the Manitoba Tax Administration and Miscellaneous Taxes Act, the restaurant pleaded guilty of failing to report $106,064 for the years 2007 to 2009 and were fined $106,564 for possessing software designed to suppress electronic sales transactions.

The other restaurant involved was Buffet Square. It pleaded guilty to evading $85,000 of federal tax and failing to report $47,734 of GST for the 2007 to 2009 taxation years. Some shareholders were even handed large fines, the largest being $142,121.

The aforementioned “Zapper” software has been the focus of a lot of attention from the CRA in recent months, as use of the software and similar software has assisted many companies in evading taxes.

Source: http://www.cra-arc.gc.ca/nwsrm/cnvctns/mb/mb130501-eng.html