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CRFA helps industry save nearly $80 million in tax systems
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The Quebec government has agreed to pay close to 80 per cent of a $100-million project to combat tax evasion – a cost the industry would have had to foot, had CRFA not intervened.
Since 2007, CRFA and the industry have strongly opposed Quebec’s proposal to eliminate tax evasion in restaurants by installing a sales recording module (SRM) on cash registers and point-of-sale (POS) systems.
The industry has always believed there are more suitable measures, including making SRMs mandatory only for establishments found guilty of tax evasion. In addition, installing these modules and making the necessary system upgrades would be costly for foodservice operators – and especially unfair for the majority of restaurants that pay their taxes.
Consequently, following announcement of this proposal, CRFA and the industry:
- set up an industry-government committee on the issue;
- requested that the deputy minister in charge of the measure attend each meeting;
- implemented a pilot project with SRMs in 40 restaurants to validate the system;
- met with the Minister of Finance to explain the impact of system upgrade costs
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In response, the government:
- postponed the project by four years;
- paid all of the pilot project costs;
- agreed to pay for all SRMs installed in restaurants as of Sept. 1, 2011 – saving the industry $25 to $30 million;
- offered $44 million for the industry to upgrade systems for SRM compatibility.
The government’s $44-million contribution will be portioned out by sales volume for all types of establishments. Contributions will range from $2,000 to $3,500 for businesses with sales of $200,000 and less, and up to $1 million for those with higher volumes. Visit Revenu Quebec’s website for the contribution scale at www.revenu.gouv.qc.ca. |
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CRFA is pleased with this tremendous victory and thanks the industry for its support.
How much would an upgrade have cost you?
Upgrading cash registers and POS systems to connect the SRMs would have cost the industry approximately:
- $2,000 for one cash register
- $7,000 for several cash registers
- $4,500 per restaurant on average
- $72 million in total for Quebec’s 16,000 restaurants
The government’s $44-million contribution to the industry significantly alleviates the cost burden of this mandatory upgrade for restaurants.
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