MONTREAL – Revenu Quebec is very pleased with the results of its recent scheme to fight tax evasion in Quebec’s restaurant sector.
In November 2011, it became mandatory for most restaurant owners to have an SRM – a machine that electronically tracks sales data – installed.
According to Revenu Quebec, the initiative has boosted self-assessed tax revenues by $160 million in just a year and “reduced the impact of unfair competition on law-abiding restaurant operators.”
“The program cost $34-million to implement,” Stéphane Dion, spokesperson for Revenu Quebec told Global News. “But for each dollar invested, we recouped ten.”
As of November 1, 2011, all Quebec restaurant owners were required to install and use an SRM when creating the bills they provide to their customers. The cost of installing an SRM is upwards of $780 – and restaurateurs are also responsible for maintenance and reporting costs.
According to Quebec’s tax collection agency, nearly 33,000 SRMs have been installed in more than 19,000 restaurant establishments in the province. Those restaurant operators that don’t install an SRM can face fines up to $100,000.
Revenu Quebec’s goal has been to lower revenue losses in the restaurant sector – which they estimate at $420 million for 2008-2009. With the new SRM system, the Quebec government expects to recover more than $2.3 billion in additional revenues by 2018-2019 – more than $300 million per year.
Between September 1, 2010, and October 31, 2012, Revenu Quebec conducted 15,956 inspections in restaurant establishments. Warnings were issued in 1,433 cases, and 3,765 statements of offence were served. A total of $1,335,400 in fines was levied, and there were 2,200 convictions.
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What are SRMs?
An SRM is a machine that tracks sales. It’s connected to a cash register or a point-of-sale system and receipt printer. and it’s designed to collect and record sales transaction information for Revenue Quebec.
The SRM that Revenu Quebec selected is an AAEON microcomputer (model AEC-6822), which has been equipped with a security seal provided by IBM Canada.
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Offence breakdown
Of all the statements of offence served, 52% were issued for failing to provide customers with a bill containing the prescribed information, for providing a bill not produced using an SRM or for failing to keep a register in compliance with the prescribed rules.
Revenu Québec has also set up a telephone hot line that individuals can use to report restaurants that fail to comply with their tax obligations. As of October 31, 2012, Revenu Québec had already received 2,518 cases, which have since been processed as a matter of priority.
Top 5 offenders
Montreal: 976 inspections, 347 statements of offence, $305,700 fines levied
Montérégie: 524 inspections, 157 statements of offence, $111,400 fines levied
Laurentides: 498 inspections, 171 statements of offence, $68,000 fines levied
Lanaudière: 128 inspections, 40 statements of offence, $59,200 fines levied
Capitale-Nationale: 251 inspections, 46 statements of offence, $59,100 fines levied
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