The courts recently released two decisions against restaurant owners in GST audit methodology cases. In 9100-8649 Québec Inc. v. Canada, 2014 CAF 20, the Federal Court of Appeal ruled against a company that operated two restaurants in Montreal. Revenue Québec had assessed the company for unremitted GST, penalties and interest on the basis of an indirect, markup audit method used for calculating unreported liquor sales after it determined the company’s records were unreliable. The decision can be found at: http://decisions.fca-caf.gc.ca/fca-caf/decisions/en/item/66724/index.do.
A similar, recent decision from the Tax Court of Canada also involving a restaurant in Québec can be found at: http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/66416/index.do?r=AAAAAQAKMjAxNCBUQ0MgNAAAAAAB.