It's a sight that's about as unassuming as any in the city: A string of taxis lining the entrance of a buzzing Toronto hotel.

But at least one hotel has launched an internal review after reports of cash paid under-the-table by taxi drivers to doormen — in exchange for passengers who will bring in large fares, like those headed to the airport.

They're called "cookies" — and they're not news to Beck Taxi operations manager Kristine Hubbard.

"This is an issue has been around as long as the taxi industry has been around," Hubbard said of the practice.

But that doesn't mean it's legal.

An investigation by CBC/Radio-Canada reveals some taxi drivers are finding themselves in a catch-22, paying what some say amounts to bribes to doormen at Toronto's Sheraton Centre hotel, for the lucrative customers.

'If you don't pay, they won't give you the big fares'

"If you don't pay, they won't give you the big fares," said one driver.

CBC-Radio/Canada has agreed not to name the drivers who spoke about the practice over concerns that they could lose their licenses.

"Everybody does that. I do that," said another.

The drivers report paying anywhere from $10 to $15 for a $30 to $40 cab fare and say the "cookies" are collected all over the city, not only at the Sheraton Centre hotel.

"It's happening everywhere," said one.

But while Hubbard says the practice has been around about as long as the taxi industry has been around, it does in fact violate city rules. Under bylaw 546-97, no vehicle-for-hire is permitted to pay any person in exchange for soliciting business for or encouraging anyone to use a taxi or limousine.

But while the practice of taxis paying in exchange for cab fares is technically a violation of a bylaw, Coun. Glenn De Baeremaeker says the problem comes down to enforcement. (CBC)

That means that while it's technically a violation to give a bribe, there's nothing stopping a doorman, or anyone else for that matter, from accepting one.

'We don't regulate doormen'

"We regulate the taxis, we don't regulate doormen," Coun. Glenn De Baeremaeker told CBC News.

"Our bylaw states that all taxi drivers should have access to all passengers and all passengers should have access to all taxis. We want a free and open market and we want a fair market. We don't want a monopoly," he added.

A couple of trips to the airport secures a taxi driver's costs for the day and then everything after that they can take home. - Beck Taxi operations manager Kristine Hubbard

That's a problem, says Hubbard and the drivers who spoke to CBC/Radio-Canada.

"By law, someone is supposed to make 'X' number of dollars for a trip, and if someone might skimming off the top of that, I would suggest that that's wrong absolutely. Taxi drivers are not millionaires," she said.

According to Sheraton Centre's general manager Tim Reardon, the hotel is launching an internal review and will take action if deemed necessary.

"It has been brought to our attention that there are reports of 'cookies' taking place at our hotel," Reardon wrote in an email to CBC/Radio-Canada.

"We are aware this is an unlawful practice and have zero tolerance for our employees and associates who participate in any activity that goes against local ordinance."

Looking for 'today's income'

But while the practice is technically a violation, De Baeremaeker says the problem comes down to enforcement.

"We cannot stop people from being corrupt... We don't have police officers on every single corner of every single street making sure that a taxi driver isn't slipping some money to someone in exchange for a ride."

Kristine Hubbard, operations manager at Beck Taxi, says that while the practice of accepting "cookies" has been around for as long as the taxi industry, it isn't fair to drivers. (CBC)

He says the city relies on the public to file complaints for the bylaw to actually be enforced. "We rely on taxi drivers to snitch on each other, to actually report people when they're giving bribes."

Hubbard says many drivers doubt whether coming forward will actually fix the problem.

"One, it's become very accepted. Two, they feel like there's no one to complain to and as you've probably heard, a couple of trips to the airport secures a taxi driver's costs for the day and then everything after that they can take home," said Hubbard.

"They're looking for today's income. They don't necessarily have the luxury of thinking, 'How could we change this for the future?'"