As a Canadian taxpayer, there are certain obligations required of you when filing your tax returns as well as recordkeeping. These are important to keep in mind, especially in the event of a CRA audit or review of your tax return.
Support Documentation: Even though most tax returns are now filed electronically, taxpayers are still required to keep source documents (i.e. tax slips, sales/purchase invoices, deposit slips, donation and medical receipts, statements, etc.) to substantiate any claims made. If you are unable to provide sufficient documentation for a claim, CRA will deny it. It is important to note that for certain claims such as donations and medical expenses, CRA does not accept credit card or bank statements or cancelled cheques as valid source documentation, the actual receipt is required.
Tax Records: Your tax filing requirements don’t end once you file your tax return. CRA often audits/reviews previous years’ tax returns to ensure compliance with the tax system and rules. The government requires taxpayers to keep their tax records (copies of tax returns and supporting documentation) for a minimum of six years from the end of the last tax year to which they relate (i.e. fiscal period for corporations, calendar year for all other taxpayers).