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Falafel House Restaurant on Corydon Needs Some Help From You!

+6
Triniman
Sourpuss
grumpy old man
EdWin
Deank
rosencrentz
10 posters

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rosencrentz

rosencrentz
uber-contributor
uber-contributor

Restaurateur pleads guilty to taxation, GST charges
THE familiar face behind one of Winnipeg's most popular restaurants has admitted to cooking the books in an attempt to boost his bottom line.
Emanuel (Ami) Hassan, the co-owner of Falafel Place on Corydon Avenue, pleaded guilty Monday to one count of tax evasion and one count of failing to remit GST.
He will be sentenced next week under a joint recommendation from lawyers that calls for $68,000 in fines and payment of the outstanding money.
Crown attorney Jeremy Akerstream told court Hassan failed to report more than $325,000 in

http://www.winnipegfreepress.com/local/restaurateur-pleads-guilty-to-taxation-gst-charges-125472003.html

http://www.elansofas.com

Deank

Deank
contributor eminence
contributor eminence

if I were him I would feel awaful



...

...

EdWin

EdWin
major-contributor
major-contributor

Tell him to set up shop in Edmonton or Grande Prairie.......swarms of customers waiting in the wings.
https://www.facebook.com/photo.php?fbid=10150307979695935&set=o.151369908231405&type=1&theater



Last edited by EdWin on Wed Jul 13, 2011 10:45 pm; edited 1 time in total

grumpy old man

grumpy old man
administrator
administrator

Deank wrote:if I were him I would feel awaful



...

...
Ummm, Boo.

rosencrentz

rosencrentz
uber-contributor
uber-contributor

What does umm Boo and groan mean?
it is everyones resposibility to pay the least amount of taxes owing. People on salaries wouldn't understand, while business people when not sure about taking a deduction, have to take it and then defend it if necessary! I have gone head to head with revenue Canada on several occasions and won some and lost some.

http://www.elansofas.com

Sourpuss

Sourpuss
major-contributor
major-contributor

Rosey, I think you missed Dean's pun, ergo, the boo and groan. Had nothing to do w/ the necessity of tax.

I noted that this place didn't take credit or debit cards when I went there. Probably helps evade tax.

http://www.citizensourpuss.wordpress.com

grumpy old man

grumpy old man
administrator
administrator

Sourpuss wrote:Rosey, I think you missed Dean's pun, ergo, the boo and groan. Had nothing to do w/ the necessity of tax.

I noted that this place didn't take credit or debit cards when I went there. Probably helps evade tax.
He knew what we meant sourpuss. Rosen has a, ummm, unique sense of humour...

Guest

Anonymous
Guest

Sourpuss wrote:

I noted that this place didn't take credit or debit cards when I went there. Probably helps evade tax.


Talk about heat-score!! If you take cash-only in a restaurant, it is thee best way of drawing attention to the fact you are skimming. It was only a matter of time before he got nailed.

Triniman

Triniman
general-contributor
general-contributor

rosencrentz wrote:What does umm Boo and groan mean?

The groan? If you're a boy, you don't want to get kicked there.

AGEsAces

AGEsAces
moderator
moderator

I just read something in the Sun about this..

Says he didn't do anything wrong...that he submitted all his paperwork to this accountant as required...and that the accountant screwed it up.

http://www.photage.ca

Deank

Deank
contributor eminence
contributor eminence

from the freep article

"
Crown attorney Jeremy Akerstream told court Hassan failed to report more than $325,000 in income between 2005 and 2007.
The crime was discovered in 2008 during a detailed financial audit.
"The motivating factor was simply greed, wanting a bigger
share of the pie and hoping he could get away with it," said Akerstream.
He said the Crown was originally considering requesting
jail time based on "numerous false and deceptive" statements Hassan made
to auditors. But they softened their position because Hassan has shown a
"remarkable change in attitude" since his initial arrest.
Hassan was the sole owner of Falafal Place at the time of the incidents. He has since taken on a partner.
Hassan initially told auditors his 2007 business records
were stolen from the back of a moving van when the restaurant moved from
a previous location. He also claimed his children worked at the
restaurant for free -- even though auditors found regular deposits were
being made to their bank accounts."

sure dont sound like the accountant screwed up

Guest

Anonymous
Guest

Sounds like he was originally trying to blame his accountant but it didn't work.

rosencrentz

rosencrentz
uber-contributor
uber-contributor

GOM and another unnamed person from the forum visitied this fine establishment this week for a 10PM brunch.
Allarently the food was great and the service, also for $9 you got 3 eggs, bacon or sausages, hash browns or potatoe pancake and toast.
Grumpy was pretty funny, because he ripped off the numbers off the receipt, figuring he would mess up the numerical numbering system and get the part owner, Avi, who wasn't there, in more hot water.
Taking cash only in a restaurant where the owners are always there taking the money is a very good way to cut down on the banks ripping you off for 3% of the gross with credit cards.
Kelekis' in the North End have the same policy, and I bet you JJ's does the same!

http://www.elansofas.com

Guest

Anonymous
Guest

The meager amounts that are charged for banking services are not an issue as the prices don't reflect any savings on the menu. Besides, other restaurants tack it on to the cost of business and build it into the prices charged.

Imo, that's a very weak reson for a cash only business.

rosencrentz

rosencrentz
uber-contributor
uber-contributor

It is a time issue. Way too much time involved for everyone using a credit card or a cash card, and having to settle and the 100s of slips per day for a restaurant.
Cash only would save so much timne, and restaurants dont have any problem writing that bottom portion for your bill if you need it for a receipt!
No one cares if they have to pay cash, I think?

http://www.elansofas.com

Triniman

Triniman
general-contributor
general-contributor

Is there a cash-only sofa factree? Business would improve by 87% lol!

rosencrentz

rosencrentz
uber-contributor
uber-contributor

For an 87% improvement I would look after that! We have done a cash only custom made for my children sofa deal, but it didn't seem to work out too well! We sent the sofas out, but the cash never came in! lol

http://www.elansofas.com

Guest

Anonymous
Guest

Rosie. I think it's time for you to stop defending your friend's illegal behaviour.

rosencrentz

rosencrentz
uber-contributor
uber-contributor

I am not defending anyone's illegal behaiour, really, just pointing out that JJ's and the 90 year old North End restaurant are just 2 of the many restaurants that cannot be bothered with the slowness of having to take credit cards 400 times per day!
The hiding of sales an illegal practises are something that has nothing to do with taking cash only.
It only makes it more difficukt to catch.
Remember Hy's many years ago? They had 2 different bills with the same numbers.
Oops, another Jewish firm! Darn it, not a good example! lol

http://www.elansofas.com

Freeman

Freeman
uber-contributor
uber-contributor

Deank wrote:from the freep article

Hassan initially told auditors his 2007 business records
were stolen from the back of a moving van when the restaurant moved from
a previous location.
Probably the first question of his credibility. Thieves would normally wait for the van to stop moving before they steal from it.

Sourpuss

Sourpuss
major-contributor
major-contributor

It doesn't take that long to ring through a debit or credit transaction today, now that you swipe and sign or swipe and pin. This isn't the dark ages when they had to pull out carbon sheets, phone through auths etc. The vast majority of everywhere that wants to have repeat customers and has nothing to hide is able to do this - places larger and busier than the north end place or the falafel place. Accepting only cash makes it easy to cook books, launder money etc.

Sucks to be the new business partner, depending on what kind of legal partnership they have. Would hate to have assumed that hot mess!

http://www.citizensourpuss.wordpress.com

rosencrentz

rosencrentz
uber-contributor
uber-contributor

My wife went shopping last weekend to The Bay, found what she wanted, went to pay with her debit card, and the card wouldn't work.
She came home, and I phoned the Bank. They said it was The Bay's terminal that was at fault. Back she went, and she had to go to 3 different check outs before the transaction worked.
I had told her to go 1st to the cash machine down the block and go with cash. It was only $110.00, but that was too inconvenient.
What do you do when you go to pay for your meal with plastic, and the machine terminal is down?
Yesterday I was at the checkout at Suprstore and a senior was ahead of me. His bill was $1.80 and he pays for it with his debit card.
Credit cards slow things down, but we really don't care, except when someone has rung up $177.87 and their card doesn't work.

http://www.elansofas.com

grumpyrom

grumpyrom
major-contributor
major-contributor

I find the exact opposite 95% of the time, as long as the machine is not down. Transaction times for the new chip enabled cards is usually 5-10 seconds at most, compared to cash which at times can be excrutiatingly slow while you wait for the person ahead to count their change out, then try and figure out how much extra to give the clerk so they don't get back more change etc. Just the other day I sat behind some bozo at Safeway who was paying for $20-something dollars worth of groceries at the self-serve checkout with a ziplock bag of nickels, dimes and yes pennies. For god's sake roll that sh1t and go to the bank. It's just ignorant to hold up everyone else so you can dump your change.

And I second some of the comments made already, running a cash only business these days is a sure fire way of making the CRA suspicious. Good on them for busting this guy and every other tax cheat. Personally I think the punsihment is incrediblty lenient considering this individual under reported $325,000 going back up to 6 years. That's 6 years he got to keep that additional income and his punishment is $68,000? WTF? That sound's to me like less than roughly what he would have earned off the unreported income in interest if invested wisely. Way to go hard on em CRA. Personally, I'd like to see fines of double or tripple the outstanding amount. That's the only way your going to discourage it from happening. Make the penalties so harsh that no one in their right mind would consider outright fraudulently under reporting.

I see no reason why good honest business's and individual's should have to carry the load for those that choose not to pay. I'd bet that the amount of individuals caught probably just scratches the surface of how much is really scammed. I wonder how much lower tax rates could be if everyone just paid what they owe.

Guest

Anonymous
Guest

I agree. Now, in many cases, it takes longer (.05 sec) to print the receipt than to do the exchange I noticed.

I too, sure hope that the CRA is looking into some of these "cash businesses", as well as other agencies. Terrorists can take advantage of these business deals to funnel money to bad people.

Regarding fines, I have a hunch they look at "the tipping point" for these individuals to make sure they can and do pay the money back. Too heavy a burden and they fold into the underground economy forever.

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