Tip Of The Day #79 – Everything You Ever Wanted To Know About Receipts But Were Too Bored To Ask
Barbara Steckly
Everything You Ever Wanted To Know About Receipts But Were Too Bored To Ask
Today’s advanced technological procedures beg the question:
“Can I destroy the original receipt if it has been scanned and saved electronically?”
CRA’s publication RC4409 on Keeping Records, has a very important paragraph that is easily missed:
"Your electronic records must meet the requirements for all records. Scanned images of paper documents, records, or books of account that are maintained in electronic format are acceptable if proper imaging practices are followed (my emphasis) and documented."
If you scan documents, you must still retain the original source document for the CRA auditor to review.
Why? Because scanned documents can be altered ... therefore they are not admissible in a court of law as evidence.
Chances are the auditor will accept your scanned receipts ... if you can demonstrate to the auditor the integrity of your scanning procedures, or, in other words, whether your scanning personnel are trustworthy and following proper imaging practices.
If auditors suspect fraud, obviously, they’ll demand to see the original paper receipt. Some court cases have ruled in favor of CRA and disallowed thousands of dollars of otherwise claimable expenses. Not fun.
But don’t take my word for it ... check out CRA’s written policy ... AND make sure you read the section on "What is imaging?".
Best practice at this time is to keep all your source documents in the form you originally received them - e-receipts in e-format and paper receipts on paper - stored away so they don’t get lost.
Use your scanned receipts/pdf versions for look-up reference. and for “back up” in case your paper copies get misplaced.
Better safe than sorry!
Preferred Client Services, professional bookkeepers in Edmonton, AB working as business partners to make a positive difference to your bottom line!