Montreal restaurant faces nearly 400 tax fraud charges, $800,000 in fines

A Montreal restaurant is in the crosshairs of Revenue Quebec.

Pho Cali, a Vietnamese restaurant in Chinatown, faces nearly 400 tax fraud charges and almost $800,000 in fines. The accused could also be subject to prison terms.

The restaurant, an administrator and a collaborator are accused of producing false declarations, evading taxes and not printing out receipts through an official register.

Investigators say they believe they concocted a scheme using a parallel billing system to avoid declaring and paying taxes. The infractions are alleged to have taken place between June 23, 2011 and February 6, 2013.

Revenue Quebec announced recently it intended to recover over $2 billion by 2018-2019 through measures to fight tax evasion in the restaurant sector.

Revenue Quebec says they lost about $420 million to tax fraud for the year 2007-2008 alone.

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  1. Pierrefonds Guy posted on 04/24/2014 11:06 AM
    What is the phone number to call if we know of a restaurant that does this?
    1. Theo posted on 04/24/2014 02:58 PM
      @Pierrefonds Guy On the Revenue Quebec site look under "Report of Failure to Meet Fiscal Obligations". Phone is 1-855-208-1131 (toll-free).
    2. john posted on 04/24/2014 04:46 PM
      @Pierrefonds Guy Call revenue quebec, that's what I did.
  2. William James posted on 04/24/2014 12:44 PM
    But they told me the machine was down ;)
  3. James Blunt posted on 04/24/2014 02:30 PM
    well they told me there was some technical difficulties with the register system.
  4. markR posted on 04/24/2014 03:06 PM
    Hey Dr. Couillard here is an idea, convert the staff at OQLF to work for the Revenu Quebec to inspect and catch the tax cheats and then we'll balance the budget with all the the taxes they recover since they were so good at nit picking the small stuff on english language.
  5. sco posted on 04/24/2014 05:52 PM
    Great Soup GREAT PRICE! I wondered how they got all those new TV's
  6. melnibonean posted on 04/24/2014 07:30 PM
    I would take what the Revenue Dept says with a grain of salt the size of the Orange Julep. They are allowed by law to render estimations and then the tax payer must prove the estimation to be wrong. You're guilty because the State says so unless you can show otherwise.

    Many, many, many businesses have had to pay unwarranted tax to the coffers of Revenue Quebec because they couldn't satisfy the MRQ beyond a shadow of a doubt of the error of their estimation. It's cheaper to make a deal and pay them rather than pay a lawyer (no offense to lawyers) $40-$50K to fight for you in court where you may or may not win (and then if you'll have to pay the MRQ anyways....).

    The MRQ also engages in quasi-legal behavior because they know the general population doesn't have the money to fight them in court where a judge could order them to stop their actions. So they run rough-shod.

    I work in the tax industry. I absolutely know what I'm talking about, as I see it everyday.
    1. lena73 posted on 04/29/2014 07:21 PM
      @melnibonean you nailed it, but in their case, $800k in fines is a hell of an estimation.
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