Quote:
Originally Posted by Kiran403
I worked as a server all through college and some of the servers claimed their tips and some claimed none. The ones that claimed none usually ended up getting audited or re-asssessed at some point. The servers who claimed their tips only claimed a portion of them (say 10-25% of their gross wages) and never had any issues with CCRA. I think the government realizes that nobody is going to claim all their tips but at least if you make an effort and claim something somewhat reasonable, they usually won't make an issue of it...at least from my personal experience.
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You have to be careful with this these days. If Revenue Canada really wants to nail you they can as all they have to do is go to your employer and ask to see what you did in sales for the year. Todays ordering/billing systems keep track of what each server "sold" for the year and then they can take an arbitrary percentage of that, no matter what you actually got tipped.
Say you claimed no tips for 2011 they go to Moxies and ask them for your receipts. You sold a 100,000 in drinks and meals for 2011... well average tip is 15% and you have to tip out a third of that. That means you were tipped approx $10,000 in tips you should be claiming. Then they bill you for the tax on that 10 grand plus interest.