Paper records

Tax Topics
1

I’ve digitized all of my past records, because I’ve only been in business since 2020 - so small hill not mountain.

Now that most everything we are doing is digitized, I’m curious what others are keeping in hard copy. Right now, all my file folders have is the client sheet for the year and hand signed documents. I don’t really need that either. I just wouldn’t have anything in the filing cabinet if I didn’t keep those. Is anyone doing this cabinet-free?

2

I have spoken with a CRA auditor and they said we cannot scan paper docs and discard the paper docs; we need to keep paper docs for 6 years; this is for us as tax preparers and for taxpayers who need to keep receipts for six years. Only docs received digitally can be kept as digital files only.

3

I do not keep any paper docs for my files

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4

I have spoken with CRA staff who have said the exact opposite. I wish they would train their staff consistently!!!

But, in all practicality, when they ask for supporting documents or T183s or whatever, they always want it submitted electronically if possible. So, if you scan the documents minutes before uploading them, or years prior, what difference does it make, and how would they know?

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5

I feel like that might not stand up to a challenge. They accept scans of all kinds of paper documents for submission, so requiring paper copies to be kept instead of scans doesn’t make sense.

6

I went through several audits and scanned docs were completely acceptable. I am in the process of clearing out 3 full lateral cabinets as I want no more paper.

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7

I started scanning my paper files in 2003 and getting rid of the paper. That’s when I also started saving my files by printing to PDF. I’ve had to send T183s to CRA a couple times and the PDF versions are fine.

8

In my experience, the wording around “keep physical documents” has typically been if scans are poor quality, however in those examples you would in theory just re-scan. As long as they are readable CRA wouldn’t ask for a physical copy. I’ve always instructed clients, the moment its safely digitized (backups recommended) you are free to do with the receipts what you want.

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9

Awesome, thanks for the feedback!

I think the scans I take immediately are better for a lot of things. Those register receipts fade so much. Some of the scans I did from 2020 and 2019 are almost unreadable no matter how much resolution and density I set the scanner to.