Sales suppression software encourages tax evasion

The CRA has issued a warning to business owners about electronic sales suppression software, currently being marketed across Canada.

The software is designed to work with point-of-sale systems and electronic cash registers, and can be used to select and delete cash sales from computer records. In some cases, the CRA says businesses have collected taxes from patrons.

Though Canada has a high compliance rate, businesses that purchase this software can underreport their revenues. These owners will have to pay the taxes they did not report, plus interest and penalties, and could also face court-imposed fines and sentences.

Read: Business owner evades tax; fined $170,000

“[These] businesses evading taxes are placing an unfair burden on the individuals and other businesses that accurately report their income,” says the CRA.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.