Tax Evasion in the Restaurant Sector

Revenu Québec intends to recover $2.3 billion by 2018-2019 (some $300 million per year) using the new measures implemented to fight tax evasion in the restaurant sector.

Our goal is to reduce the loss of tax revenues — estimated at $420 million for the year 2007-2008 — by ensuring that taxes paid by customers are remitted to the government and that restaurant establishments report all their income.

Since November 1, 2011, all restaurants subject to the new measures must provide to their customers bills produced by a sales recording module (SRM). To comply with the new measures, restaurateurs that installed sales recording modules before November 1, 2011, were eligible for a government grant program. The government allocated $52 million to this program.

Customers have the right to expect that restaurateurs report their actual sales and that they remit to the government the taxes collected on each sale. Moreover, tax evasion in the restaurant sector results in unfair competition for law-abiding restaurateurs. It is a matter of fairness for all taxpayers.