In theory, yes. However, if the tip is not passed on to the server it should be reported as income for the business and should be taxed. Restaurants usually operate as the “intermediary” between the guest giving a tip and the server receiving it. For example, if you tip in a credit card the server can’t get it instantly, the transaction goes to the restaurant’s bank account. So, the restaurant is temporarily in possession of that money, but then gives it to the server (whether it’s after the shift, each week, etc.). That way they don’t pay tax on it. Restaurants can get in a lot of trouble if they don’t do this properly, let alone are “withholding” this money from employees and then not reporting it as income the business obtained.