Liquor Industry Update: November 24, 2022
Dear ABLE BC Members and Industry Colleagues,
Here's what you’ll find in today’s update:
Single Bottle Pick Service Update
David Eby Sworn in as Premier
Update on Temporary Authorization for LPs During FIFA World Cup
LDB Liquor Wholesale Operations Service Update
Thank You for Attending SPARK: BC Hotel & Liquor Conference!
Are Electronic Tips Now Considered “Controlled Tips”?
2nd Annual Vancouver Cocktail Week Announcement
Save the Date: Upcoming Events and Webinars
Find all past updates here.
Single Bottle Pick Service Update
We have some great news to share today!
As of November 23, LDB Wholesale Operations will be partially resuming single bottle pick service by offering a selection of 118 premium price point products for the holiday season.
The complete list of all single bottle pick products is posted on the LDB Wholesale Operations website. The 10% bottle restriction – as applicable to specific customer types, and outlined in the WCC Order Handbook – will continue to apply.
A gradual resumption of single bottle pick service will allow LDB Wholesale Operations to balance customer demand with seasonal volumes, ensuring customers receive on-time deliveries over the holiday season. Any further expansions to the single bottle pick service will be reviewed and reassessed in the new year.
LDB remains focused on maintaining uninterrupted service to customers during the busy holiday season.
Click here to read a memo from LDB.
David Eby Sworn in as Premier
On November 18, David Eby was sworn in as BC’s 37th Premier while surrounded by family, friends, colleagues, and community members from throughout British Columbia.
In a ceremony hosted by the Musqueam Indian Band, the first-ever swearing in hosted by a First Nation in BC, Premier Eby made a commitment to tackle the challenges people are facing, while making meaningful improvements in the lives of British Columbians.
The premier promised swift action on the most pressing issues facing British Columbians: fixing the housing crisis, making communities safer, strengthening health care, and acting on climate change. All work will be done in close partnership with Indigenous Peoples, as well as federal and municipal governments.
ABLE BC congratulates Premier Eby on his appointment and we look forward to working with him and his government in the days ahead!
Click here to read the government press release.
Update on the Temporary Authorization for LPs During FIFA World Cup
As you are aware, Liquor Primary establishments have been granted temporary authorization to extend their hours of operation during the 2022 FIFA World Cup, November 20-December 18, 2022.
This will not apply to liquor service hours.
Please read Policy Directive 22-15 for full the details of the temporary authorization.
ABLE BC and our industry colleagues at the BCRFA and Restaurants Canada asked the LCRB to also extend liquor service hours during the World Cup. If you attended our SPARK Conference on November 15, you would have heard directly from David Hume, General Manager of the Liquor and Cannabis Regulation Branch (LCRB), and ABLE BC's Executive Director, Jeff Guignard, about the considerations and consultations required to make this decision.
The LCRB looked closely at our proposal to extend liquor service hours to 7 am for the FIFA World Cup. However, in consultation with industry, police, health care, and local government leaders, important concerns were raised about the impacts on public safety and the pressure those impacts could place on already stretched police and healthcare resources.
While the LCRB was open to our proposal, municipal governments would need considerable time to implement health and safety guidelines.
We will work with the LCRB on this for future sporting events and provide updates as they are available.
LDB Liquor Wholesale Operations Service Update
As announced on November 7, LDB Wholesale Operations has resumed normal delivery schedules for LDB-stocked product and the majority of non-stocked wholesale product (NSWP).
If you continue to experience delays or other delivery challenges, please email us at info@ablebc.ca.
We know how frustrating the recovery period has been for industry. The LDB recognizes the challenges this period has caused for you and your businesses and apologizes for the extended job action recovery period. They thank you for your patience and understanding.
If you attended our SPARK Conference on November 15, you had an opportunity to hear directly from Sairose Fisher, Executive Director of LDB Wholesale Operations. Sairose provided key insights into the recovery period, record-high order volumes, and an update on wholesale operations. We are grateful to Sairose and Renu Bains, Director of Supply Chain, for their informative presentation and for answering industry's questions at SPARK. We will be sharing highlights from our conference in the coming weeks.
Now that service levels are back to normal, this will be the last LDB Liquor Wholesale Operations service update communication related to post job action service levels.
Holiday operational updates, including holiday shipping schedules and WCC holiday hours, are detailed on the news page of the LDB Wholesale Operations website
Click here to read a memo from LDB.
Thank You for Attending SPARK: BC Hotel & Liquor Conference!
November 15th was the first ever SPARK: BC Hotel & Liquor Conference, hosted by ABLE BC and our friends at the BC Hotel Association!
The event was a great success with engaging and informative presentations for the liquor and hospitality industries at both Nest and Waterfront Theatres, a delicious lunch from Dockside Restaurant with entertainment from comedian Julie Kim, and a fun networking reception with drinks and snacks at Performance Works.
We’d like to extend our sincere thanks to our conference partner BCHA, our generous sponsors and speakers, venue staff, comedian Julie Kim, and of course all of our delegates who made for a wonderful day.
If you attended SPARK, we’d love to hear your feedback! Please take this 5-MINUTE SURVEY outlining your experience at the conference. The survey will close Tuesday, November 29 at 5:00 pm. We greatly appreciate your feedback!
Missed the conference? Click here to view presentation decks from some of the sessions.
We’ll be sharing photos from our on-site photographer, Brad Kasselman, in the coming weeks. Stay tuned!
Are Electronic Tips Now Considered “Controlled Tips”?
In case you missed it in our last newsletter, we shared this article from labour law experts Ryan Anderson and Mark Bout of Mathews Dinsdale & Clark LLP.
Are Electronic Tips Now Considered “Controlled Tips”? – Payroll Tax Implications of Recent Federal Court of Appeal Case
A recent decision of the Federal Court of Appeal has generated considerable attention and concern from employers in Canada’s hospitality and service industries.
In Ristorante a Mano Limited v. Canada (National Revenue), the Court of Appeal upheld a decision which determined that certain tips paid electronically ought to be subject to payroll deductions for the purposes of Canada Pension Plan (CPP) and Employment Insurance (EI) contributions.
Historically, Canada Revenue Agency (CRA) guidance indicated that tips are considered income under the Income Tax Act but may or may not be “pensionable earnings” and/or “insurable earnings” for the purposes of CPP and EI deductions/contributions. Whether or not these deductions/contributions must be made by an employer depends on whether the tips are paid by the employer (Controlled Tips) or paid by a client/customer (Direct Tips).
Controlled Tips are considered part of the wage paid by an employer and must have CPP and EI deductions, as well as income tax deductions. Direct Tips, in contrast, are paid directly by a customer to an employee and do not trigger CPP and EI deductions.
The Ristorante a Mano decision is based on the common circumstance of restaurant customers tipping their servers electronically. Tips received electronically were provided to servers the following business day – referred to as “due-backs” – from the employer.
The restaurant did not consider due-backs to be Controlled Tips so did not make CPP and EI deductions from these amounts. However, a CRA assessment found that such deductions ought to have been made from the due-backs because they amounted to payments from the employer to the employees in respect of their employment. The restaurant challenged that decision and the matter was ultimately heard by the Federal Court of Appeal, which agreed that the due-backs had been paid by the employer and therefore triggered CPP and EI deduction obligations.
In reaching this decision the Federal Court of Appeal held that the relevant test – whether an amount is “paid by the employer” – ought to be given a broad interpretation. The Court determined that when tips came into possession of an employer before being distributed to employees, that is sufficient to find they are “paid by the employer.” The Court’s primary concern was that the amounts came into the employer’s possession (i.e., into its bank account) prior to being distributed by the restaurant to staff.
In this respect, the Court explicitly confirmed that the matter did not concern “the servers’ net electronic tips – an amount that might exceed the due-back because servers retained cash received for restaurant bills”. This creates a complicated result that highlights the fact that the Court did not decide that all electronic tips ought to be subject to payroll deductions.
For example, if a server receives $200 in electronic tips one night, not all of that $200 would necessarily be subject to payroll deductions. If on that same night, one customer paid $45 in cash, plus a $5 cash tip, and the server kept that $50 in cash, the $45 owed by the server to the restaurant could be deducted from the due-back, resulting in a net payment owing to the server in the amount of $155. In this scenario, only the $155 amount (rather than the full $200 in electronic tips) would be subject to payroll deductions.
Setting aside such complications, the decision of the Federal Court of Appeal departs from the longstanding guidance provided by the CRA concerning electronic tips. That advice remains posted on the CRA website, as follows:
A customer includes an amount for a tip when paying the bill by credit or debit card and the employer returns the tip amount in cash to the employee at the end of the shift. In exceptional situations the cash tips could be paid out the day after, for example, if there was not enough available cash on hand
Example 2: Direct tips
You are part of the serving staff in a restaurant. The restaurant owner informs you that if a customer pays by credit or debit card and includes a voluntary tip, the restaurant will return the full tip amount back to you in cash at the end of each shift.
This guidance is inconsistent with the ruling in Ristorante a Mano, and it is currently unclear if the CRA and its auditors will adopt the much more narrow approach articulated in that case – i.e., characterizing electronic tips as Controlled Tips any time they pass through the bank accounts of employers.
In the meantime, employers must be cautious and know that tips received by electronic payment and then transferred back to staff may be considered Controlled Tips and trigger an obligation to make payroll deductions.
For further information on Direct and Controlled Tips and payroll taxes, read this article from go2HR or watch these recent webinars from Restaurant Canada.
2nd Annual Vancouver Cocktail Week Announcement
Save the date! After a spectacular inaugural event in 2022, Vancouver Cocktail Week presented by The Alchemist returns for a second round in March 2023.
One of the highlights of VCW 2023 will be its new partnership with Diageo World Class Canada, the prestigious cocktail competition that has elevated so many of this country’s bartenders onto the world stage. World Class Canada will host its national final speed round at the closing gala, with previous winners flying in to host seminars and guest shifts throughout the week.
Tickets for Vancouver Cocktail Week presented by The Alchemist, March 5 to 11, 2023, go on sale December 1, 2022.
Click here for tickets or to browse the Vancouver Cocktail Week 2023 program guide.
Click here to read the press release.
Save the Date: Upcoming Events and Webinars
IVSA Buyers' Tasting Salon December 5
Attention Sea to Sky liquor buyers! The next IVSA Buyers’ Tasting Salon is coming up on Monday, December 5 at Caramba! Restaurant in Whistler Village. This walk-around tasting is an industry-only event. Liquor agents will showcase imported wines, spirits, and beer.
Please send your RSVP to admin@ivsa.ca. Include your full name, company name, and title.
Date: December 5, 2022
Time: 1:30 pm-4:30 pm
Location: Caramba! Restaurant, 4314 Main Street #12 Town Plaza, Whistler
RSVP: admin@ivsa.ca
BC Tourism & Hospitality Conference March 1-3, 2023
The BC Hotel Association (BCHA) and the Tourism Industry Association of British Columbia (TIABC) are excited to announce the 2023 BC Tourism & Hospitality Conference will return March 1-3, 2023.
The 2023 conference will take place in Prince George and will bring an array of unique industry speakers and topics relating to the next chapter of tourism and hospitality within our province.
Click here to learn more.
Vancouver Cocktail Week March 5-11, 2023
Presented by The Alchemist magazine, the second annual Vancouver Cocktail Week will be held March 5 to 11, 2023, at venues across Vancouver. It will be a showcase of the city’s immense bartending talent, with events ranging from seminars, happy hours, and cocktail-paired dinners to the opening elevated brunch at the Fairmont Pacific Rim and closing gala at the Fairmont Hotel Vancouver. Vancouver Cocktail Week is also proud to partner with Diageo World Class Canada and to support the BC Hospitality Foundation.
Click here for more information.
Out and About with ABLE BC!
Last week was a whirlwind! Our SPARK Conference on November 15 was a successful day full of engaging presentations, panels, and networking with industry peers and colleagues. We are incredibly grateful to the BC Hotel Association, our generous sponsors, speakers, the venues, and of course all of you for making the day possible!
We hope you left the conference feeling as inspired as we did. We’re already looking forward to next year’s conference, and all of the great ABLE events planned for 2023.
If you attended SPARK, we’d love to hear your feedback! Please take this 5-MINUTE SURVEY outlining your experience at the conference. The survey will close Tuesday, November 29 at 5pm. We greatly appreciate your feedback!
On November 17th, the ABLE team (including Jeff, Ann, and ABLE BC President Yvan Charette) attended John Horgan’s final event as BC’s Premier – Closing Comments: A Conversation with Premier John Horgan, presented by the BC Chamber of Commerce. This event was a candid reflection of Horgan’s time in politics, accomplishments, challenges, and some insight into BC’s post-pandemic political and economic future. We thank John Horgan for his years of service to British Columbians.