OTTAWA — The Canadian Revenue Agency (CRA) has been cracking down on undeclared tips for restaurant and bar staff, according to The Globe and Mail.
As many as 200 staff members at Charlottetown-based Murphy Hospitality Group are having their 2014 and 2015 earnings audited. The CRA is claiming some individuals failed to declare as much as tens of thousands of dollars. The agency is seeking back taxes from these individuals, with the potential for further financial penalties.
This wave of audits highlights the CRA’s increased ability to track income from tips in today’s increasingly cashless society.