New federal legislation came into force on January 1, 2014 with administrative monetary penalties and criminal offences to address the underreporting of revenues through the use of ESS software, also known as “zappers” or “phantomware”.

ESS refers to the use of a software application to selectively delete or modify sales transactions from point-of-sale systems or accounting systems without maintaining a record of those changes. ESS software has been used by some to hide sales to evade the payment of GST/HST and income tax, contributing to the underground economy.

A description of the new ESS software sanctions, tips on how to comply and some frequently asked questions are available here.

If you have any questions or concerns, please don’t hesitate to contact: Jason McLinton, Senior Director, Federal Government Relations at: [email protected] or 613-656-7903.