Business improperly taxing clients

[BsFaninCGY]

So I'm going through receipts to claim some massages and I notice that the place I've been going to for years has been totalling my tip with the cost for service, then adding tax on both. This looked weird to me, as no other places that I tip has the same structure on their receipts. I looked into it, and sure enough - not allowed. I don't know how this slipped by me up to now, but I'm pretty upset about it. In the end, I'm not out a ton of money - but they're most definitely breaking the rules. And as a small business owner myself, that really rubs me the wrong way.

How should I deal with this? I recently found a therapist there who is incredible and I want to keep going there. I don't like getting overcharged however. I know I could contact the owner and bring it up - but not sure what that might bring on. If they feel they're doing things right they may argue with me and I don't want it to be awkward next time I go in - massages are supposed to be relaxing.

I could call the CRA, but I don't want them getting hammered for a mistake. But - what if it's not a mistake? What if they're skimming? It's tax season so I'm looking at receipts and I just came across another for a different business who is rounding up the pennies on Interac charges - again, not allowed.

How would you handle this? Again the cost to me is minimal, but the principal really bugs me...

[Ped]

Originally Posted by BsFaninCGY

that really rubs me the wrong way.

If a massage parlor is rubbing me the wrong way, I definitely find a new place.

[afc wimbledon]

Originally Posted by Ped

If a massage parlor is rubbing me the wrong way, I definitely find a new place.

either that or give them a hard time about it, you cant take it lying down

[Barnet Flame]

I don’t think this has a happy ending.

[GGG]

I think you have a few options

1) Quit tipping for a medical service

2) Mention it in passing like I’ve never seen tax on the tip portion are you sure that’s right? It’s probably an issue with their POS system because they use something for the medical field and not the restaurant field so see point 1. The massage place my wife goes to does this as well.

3)Let it go, despite the principle that bugs you this “gouging” of less than 1%. Your talking 25-50 cents. You probably wasted more value typing your post and looking up the rules on the internet then you will ever recover from no tax on tips.

[calgarygeologist]

Originally Posted by GGG

I think you have a few options

1) Quit tipping for a medical service

2) Mention it in passing like I’ve never seen tax on the tip portion are you sure that’s right? It’s probably an issue with their POS system because they use something for the medical field and not the restaurant field so see point 1. The massage place my wife goes to does this as well.

3)Let it go, despite the principle that bugs you this “gouging” of less than 1%. Your talking 25-50 cents. You probably wasted more value typing your post and looking up the rules on the internet then you will ever recover from no tax on tips.

Tipping for massages is sort of a grey area. I understand tipping a hairdresser/stylist so if the massage is at a salon and spa business it might be common and acceptable to tip for a massage. If the massage is at a physio or clinic i see no point in tipping. A massage parlour is a weird in between.

[BsFaninCGY]

Originally Posted by GGG

I think you have a few options

1) Quit tipping for a medical service

2) Mention it in passing like I’ve never seen tax on the tip portion are you sure that’s right? It’s probably an issue with their POS system because they use something for the medical field and not the restaurant field so see point 1. The massage place my wife goes to does this as well.

3)Let it go, despite the principle that bugs you this “gouging” of less than 1%. Your talking 25-50 cents. You probably wasted more value typing your post and looking up the rules on the internet then you will ever recover from no tax on tips.

All great points. My problem is I'm a rule-follower (most of the time), so when I see someone breaking certain rules that I have to follow it really gets on my nerves. It's why I also get really annoyed at bad driving - I have been a professional driver in the past and know that the rules make things move smoother for everyone. Seeing someone knowingly flaunt breaking them pisses me off, but that's my issue to deal with I guess. But you're right - it's note really worth my time in the end.

Originally Posted by calgarygeologist

Tipping for massages is sort of a grey area. I understand tipping a hairdresser/stylist so if the massage is at a salon and spa business it might be common and acceptable to tip for a massage. If the massage is at a physio or clinic i see no point in tipping. A massage parlour is a weird in between.

This is true. BUT - I had been having some very painful issues with my feet and recently found a very qualified therapist at this location who is incredible. I've had I'm sure hundreds of massages over the years and she is by far the best. I don't know how much she makes, but I want to make sure she knows I appreciate the work and training she has put in that allows her to make my life better. I will definitely tip for that in this case.

[Northendzone]

We can’t have a discussion about tipping without springs1 weighing in.

To me it seems odd to tip a medical professional. I don’t leave a loonie in my mouth for my dentist, nor do I leave a fiver for my doctor to find during my annual physical.

[topfiverecords]

Be careful how you massage the situation.

[rain_e]

Some small business owners don't know how some things work. Just bring it up with them. They might not realize the error. If they don't care then next step is to report it. Give them the opportunity to correct the mistake. Don't overthink this.

[calgarygeologist]

Originally Posted by BsFaninCGY

This is true. BUT - I had been having some very painful issues with my feet and recently found a very qualified therapist at this location who is incredible. I've had I'm sure hundreds of massages over the years and she is by far the best. I don't know how much she makes, but I want to make sure she knows I appreciate the work and training she has put in that allows her to make my life better. I will definitely tip for that in this case.

Here is what I would do. If you are considering staying with that massage therapist for some time and regularly visit them I would develop a relationship and instead of tipping them after each session bring them a gift card periodically for whatever store they might like (Starbucks, liquor store, grocery store, whatever.) Give them a gift at Christmas. Bring them some treats once in a while that they like (chocolate, donuts, whatever.)

Tipping is nice but a bit insincere. A note with a gift card or something else shows a lot more thoughtfulness and appreciation.

[GGG]

Originally Posted by Northendzone

We can’t have a discussion about tipping without springs1 weighing in.

To me it seems odd to tip a medical professional. I don’t leave a loonie in my mouth for my dentist, nor do I leave a fiver for my doctor to find during my annual physical.

If you don’t leave that fiver how do you know he checked your prostate properly

[Northendzone]

My doctor is a female, and trust me, but know

[mrkajz44]

It's probably just an oversight by the owner. I doubt they are skimming it since the invoice shows the tax on it, so I suspect they are just accidentally charging tax on your tip, but still remitting the amount to the government.

[GP_Matt]

A lot of hotels mess up the tax as well. Some charge GST on the local taxes and some charge GST first.