Restaurants in Canada that continue to charge GST and HST on qualifying goods and services during the holiday tax break period could face investigations by the Canada Revenue Agency (CRA). A recent incident involving a restaurant in Ontario highlights the confusion surrounding the tax break, which waives taxes on prepared foods, restaurant meals, some snacks, and select alcoholic beverages until February 15th.
Restaurants that fail to honor the holiday tax break could be investigated by the Canada Revenue Tax Agency, according to the Ontario Restaurant Hotel and Motel Association. Unionville resident Vicky Hui went out to a restaurant with a group of friends for a birthday last Saturday – the same day the GST and HST holiday started – and was surprised when they were asked to pay tax on their meal.
They caught me by a huge surprise and the waitress said it was her first time hearing about it,' Unionville-resident Vicky Hui told CTV News Toronto.Hui said her restaurant bill came to $349.95 for a group of seven people, including a $40.20 surcharge for harmonized sales tax (HST) – thought he restaurant was not supposed to collect it. 'My case was not handled well because my complaint was not handled in a professional manner. The waitress was not aware of the policy and the manager jumped to a conclusion quickly and just told us to pay,' Hui said. CTV News is not naming the restaurant in question as they provided a full refund of the HST, an apology and a $75 gift card to Hui and her group. Under tax break, until Feb. 15, tax will be waived on prepared foods, restaurant meals, some snacks and select alcoholic beverages. 'It's a great idea, but confusing and (causing) frustration for many in hospitality organizations,' Tony Elenis, CEO and President of the Ontario Hotel and Motel Association, said. Elenis says any restaurant that collects tax over the next two months could be investigated by the Canada Revenue Agency. 'If a business doesn't comply and charges the GST and HST, and it's discovered they could be investigated by the CRA for non-compliance,' Elenis said. A spokesperson from Restaurants Canada confirmed to CTV News Toronto that the CRA clarified Bill C-78 received royal assent, and that businesses 'should not charge GST/HST on qualifying goods and service
CANADA TAX BREAK RESTAURANTS CRA GST HST
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