Brick Brewing Co is to send an extra CAD1.3m (US$1.2m) to Canada's tax authorities after an accounting error saw it fall foul of Ontario's beer tax laws.

The Canadian brewer said today (10 March) that it had erroneously omitted volumes related to a free can promotion on its Laker beer brand between January 2011 and this year. The company, based in Kitchener, Ontario, will pay back the missing tax this month, it said.

“When we concluded there was an issue, we immediately took steps to quantify it, notified the board and our external auditor, and we will be making a payment for the prior amounts this month." said George Croft, CEO at Brick.

The impact of the CAD1.3m will be split approximately CAD700,000 in fiscal 2014, CAD300,000 in fiscal 2013 and CAD300,000 in fiscal 2012, Brick said.

The brewer is due to release its full-year results on 17 April. Including the correction, EBITDA is expected to be about CAD4.2m, a 7% drop on last year's CAD4.5m.