Waiters, waitresses, and other people who earn regular income from tips and gratuities should keep a diary of the amounts they receive. Just because the money is in cash and records may not be kept doesn't mean Canada Revenue Agency (CRA) will forget about it.

If the amount you report is different from the average and CRA decides to ask why, you must be able to back your figures up. Although you don't have to send a diary in with your tax return, you should have one available for examination. If you receive lower-than-average tips, a diary may prevent an unfair assessment by CRA.

Information for Tax Tips is provided as a public service by the Chartered Accountants of British Columbia.