Inside the CRA Audit That Uncovered Missing Cash Sales — Lessons from a Sushi Restaurant Case

Описание: What happens when the CRA discovers that the numbers in your point-of-sale system don’t line up with what’s reported on your tax return?

In this real Tax Court of Canada case — Coco Qi and 2467769 Ontario Inc. (Osaka Sushi) v. His Majesty the King, 2024 TCC 86 — the Court reviewed evidence from CRA auditors about missing sales data, gaps in POS transactions, and cash that never reached the business bank account.

The Court accepted CRA’s cash-tender analysis, showing that around 24% of the restaurant’s sales were in cash, compared to only 6% reported. This difference led to findings of unreported income, shareholder benefits, and penalties under the Income Tax Act and Excise Tax Act.

For business owners, this case shows how crucial it is to keep complete and accurate records — daily reconciliations, proper documentation of cash transactions, and consistent POS-to-bank matching. These habits protect you if the CRA ever reviews your business.

At Cloudiverse CPAs Inc. in Burnaby, we act like Google Maps for income tax — helping business owners navigate corporate tax, GST/HST filings, and bookkeeping so their records always stay audit-ready. Our team focuses on building systems that align your sales data, bank records, and tax filings perfectly.

If you’d like your financial systems reviewed or want to get your books audit-ready, contact us:
Email: [email protected]

Phone: 604-200-4027
This video summarizes information from a publicly available Tax Court of Canada decision (Coco Qi and 2467769 Ontario Inc. v. His Majesty the King, 2024 TCC 86). It is for educational purposes only and does not express any personal opinions about the individuals or businesses involved.