How to report this..

[poorwingman]

My wife is a tax auditor. They look at what you have purchased and what you have sold. If you purchased a 1000 pencils and sold 500 and have no inventory you get charged tax.

This shows up most in food businesses. They try to hide that the sold 1000 subs by saying they had 500 spoiled buns. But having 5 spoiled buns reported everyday for 100 days is a bad business move and sticks out.

If your business gets audited they will find most of your lies.

i see how this can apply to stores with regular/tangible inventory

but when food is involved.. isn't there always a good excuse? oh..the cheese went bad.. we had ordered too much b/c we were trying to get a discount.. oh we dropped a batch..etc

[Drew_W]

I quite like the OP's "99% of small businesses don't record cash sales" line...

[taichiubg]

no one will know if you do it in cash. yearly losses will raise flags.
It's the sucky truth that many don't pay their fair share of taxes.

Wouldn't this be a great advertisement?
For all of your tax free shopping needs...visit Pacific Mall in Markham Ontario!! The largest selection of restaurants and stores that don't accept any form of payment that leaves a paper trail! We protect the environment by not issuing receipts and avoiding deposit envelopes!

[Supershyguy]

no one will know if you do it in cash. yearly losses will raise flags.
It's the sucky truth that many don't pay their fair share of taxes.

Wouldn't this be a great advertisement?
For all of your tax free shopping needs...visit Pacific Mall in Markham Ontario!! The largest selection of restaurants and stores that don't accept any form of payment that leaves a paper trail! We protect the environment by not issuing receipts and avoiding deposit envelopes!

lol I am Chinese, and its sad but true.... worst part is, half the stuff is illegal anyways so what do you want them to do.

here is my share of tax this year, and we sell illegal DVD's or Fake Brand new stuff