Keeping records - Segment 7

Transcript

Host:Welcome to the segment called Keeping records, part of the Preparing your income tax and benefit return video.

I'm your host Janice Novak.

With me is Diane Rice who will share with us, in this segment, information that she has obtained from the CRA about keeping records.

Welcome Diane.

Subject matter expert: Thank you Janice.

Host: Why is it so important to keep complete and organized records?

Subject matter expert: Well, some of the reasons for keeping complete and organized records are:

  • It will help you identify the sources of your income.
  • It will remind you of expenses you can deduct and tax credits you can claim.
  • It will make it easier for you to determine your taxes owing. and
  • It will help to prevent problems if the CRA reviews your return.

Host: What are some of the consequences of not keeping my records organized and complete?

Subject matter expert: If you don't keep the necessary information and you don't have any other proof, the CRA may have to determine your income using other methods.

The CRA may also disallow expenses you deducted and credits you claimed, if you are unable to support them.

Host: And how long should I hold on to my records?

Subject matter expert: Generally, you have to keep all of your records and supporting documents for six years.

This six-year period starts at the end of the tax year to which the records relate. If you file an income tax and benefit return late, you must keep your records for six years from the date you file that return.

Host: Thank you Diane.

This concludes the segment on keeping records, part of the CRA's Preparing your Income Tax and Benefit Return video.

Thank you for watching.

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