OTTAWA — The Canada Revenue Agency (CRA) has uncovered the use of tax-evasion software at more than 400 restaurants in Canada, according to CP.As part of a three-year-pilot project, the government agency found 143 cases of fraud with each foodservice operation averaging $1 million in unreported sales. Restaurants under investigation either purchased software with built-in hidden features or used hardware, such as a CD with similar software, to eliminate sales data.
The CRA has been following the “zapper” cases since they were first detected in Vancouver in 2006, but Revenue Quebec eradicated more than 200 such devices since 1997. To combat the issue, the Quebec government requires foodservice operators provide a copy of bills to each patron as well as retain a copy of each bill. Beginning in November 2011, restaurants in Quebec will be required to use a government-approved black box to produce bills.
Meanwhile, according to CP, Garth Whyte, the president of the Canadian Restaurant and Foodservices Association, says his association has worked to solve the zapper problem with Revenue Quebec, but recommended the government target software developers who sell the products in question.
Read the complete CP story on restaurants committing fraud, online at the Huffington Post.