Ministry of Revenue

Four Related Ontario Bars Fail To Pay Tax Of More Than A Half Million Dollars

Manager Also Charged And Fined For Participating In Offences

    STRATFORD, ON, July 31 — The manager of four bars located in
southwestern Ontario was ordered to pay more than $150,000 in fines and
penalties for his role in the failure to pay Retail Sales Tax.
    On July 18, 2007, Michael Bayer, the manager of four bars, pleaded guilty
on behalf of the companies to failing to remit RST and to four counts that he
participated in the corporations' offences. Bayer must pay fines and penalties
totalling $151,875 for his role, and the four corporations were fined a total
of $247,500 as follows:

    

 — 1353690 Ontario Limited, Billy Bob's, located in Hamilton was fined
        $119,000 plus $29,750 to the Ontario Victims' Justice Fund;
 — 1330448 Ontario Limited, Falstaff's Bar Restaurant in Stratford was
        fined $45,000 plus $11,250 to the Ontario Victims' Justice Fund;
 — 2023576 Ontario Limited, Sammy's Garage Howl At The Moon of Kitchener
        was fined $25,000 plus $6,250 to the Ontario Victims' Justice Fund;
        and
 — 1524873 Ontario Limited, Sammy's and/or Stages, also of Kitchener was
        fined $9,000 plus $2,250 to the Ontario Victims' Justice Fund.

    A Ministry of Revenue investigation uncovered that the four corporations
charged RST to customers but failed to send the total amount collected to the
province. The investigation revealed:

 — Billy Bob's failed to pay $244,366.50 in RST;
 — Falstaff's Bar and Restaurant did not report RST totalling
        $182,052.59;
 — Sammy's Garage Howl at the Moon neglected to pay $50,074.27 in RST;
        and
 — Sammy's and/or Stages failed to send RST of $36,472.00.
    

Contact Info

    In addition to court-imposed fines and surcharges, businesses convicted
of tax offences must repay any taxes owing, plus civil negligence penalties
and interest. Since the unpaid taxes were discovered, Falstaff's Bar and
Restaurant has paid all but $22,000 of its taxes and civil penalties. None of
the other fines or penalties has been paid.

    The Ministry of Revenue operates a voluntary disclosure program.
Corporations and individuals may come forward and voluntarily report past
violations of provincial tax laws and pay any amounts owing. Prosecution and
civil negligence penalties are waived in such cases. To qualify for immunity
from prosecution and penalties, a disclosure must be truly voluntary - it
cannot be prompted by a request for access to a taxpayer's business records or
other ministry enforcement action.

    

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                 For more information visit www.rev.gov.on.ca