EDM9-1-1 General requirements for records

Excise Duty Memorandum 

June 2025

This version replaces the one dated November 2003, which was entitled "General requirements for books and records". This memorandum has been revised to clarify the requirements to keep records and to make the information more helpful and easier to understand.

Except as otherwise noted, all statutory references in this memorandum are to the provisions of the Excise Act, 2001. The information in this memorandum does not replace the law found in the Act and its regulations

If this information does not completely address your situation, refer to the Act or regulations or contact your regional excise office for additional information. The offices are listed at Contact information – Excise and Specialty Tax Directorate. 

On this page

• Persons that must keep records
• Record-keeping requirements
  • Entries in records
  • Location and language of records
  • Inadequate records
• Retention period
  • Early destruction of records
• Record-keeping methods
  • Imaging
• Access to records for the purpose of inspection, audit, or examination
• Provision of records
  • Search warrants
• Foreign-based information or records
• Offences and penalties

Persons that must keep records

1. The following persons must keep all records that are necessary to determine whether they are in compliance with the Act:

• every licensee or registrant under the Act
• every person that is required under the Act to file a return
• every person that makes an application for a refund of excise duties paid under the Act
• every person that transports a cannabis, tobacco, or vaping product that is not stamped 
• every person that transports non-duty-paid packaged alcohol

2. In addition:

• every cannabis and vaping product licensee must keep records that will enable the determination of the amount of cannabis or vaping product produced or manufactured, received, used, packaged, re-worked, sold, or disposed of by the licensee
• every tobacco grower and every body established under provincial law for the marketing of raw leaf tobacco grown in the province must keep records that will enable the determination of the amount of raw leaf tobacco grown, received, or disposed of by them
• every person that possesses tobacco manufacturing equipment designed for commercial manufacturing must keep records that will enable the determination of the source, type, and disposition of that equipment
• every person that has been issued an excise stamp for a cannabis, tobacco, or vaping product must keep all records that are necessary to determine the receipt, retention, location, use, or disposition of the stamp

3. Person is defined in the Act to mean "an individual, a partnership, a corporation, a trust, the estate of a deceased individual, a government or a body that is a society, a union, a club, an association, a commission or another organization of any kind."

4. Record is also defined in the Act and means "any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device." 

Record-keeping requirements

5. The Canada Revenue Agency (CRA) generally does not specify the records that a person must keep; however, the records must be kept in an appropriate form and contain sufficient information to allow for the verification of the person's compliance with the Act, including the person's liabilities and obligations for excise duty and the amount of any refund the person has claimed. 

6. Records must be supported by source documents. Source documents may include, but are not limited to, sales invoices, purchase invoices, cancelled cheques, credit card receipts, deposit slips, delivery slips, shipping records, bills of lading, production records, packaging records, work orders, inventory counts, excise duty returns, service agreements, emails, and all internal logs that support transactions related to the production or manufacture, receipt, transfer, use, packaging, re-work, sale, disposition, or destruction of an alcohol, cannabis, tobacco, or vaping product.

Entries in records

7. Every entry that is required to be recorded in a person's records must be made on the day upon which an operation or transaction has occurred. All entries must be clear and legible and must indicate the date of the operation or transaction and provide sufficient detail to accurately identify the operation or transaction that is being recorded.

8. Unless otherwise noted, entries made in the records or on excise duty returns, inventories, or any other statements should be stated as follows: 

• in the case of cannabis products that are:
  • dried cannabis, fresh cannabis, or pure intermediates, in grams or kilograms
  • cannabis plants or cannabis plant seeds, in units
  • cannabis extracts, cannabis topicals, or edible cannabis, in milligrams of total THC
• in the case of spirits that contain:
  • not more than 7% absolute ethyl alcohol by volume, in millilitres or litres
  • more than 7% absolute ethyl alcohol by volume, in millilitres or litres of absolute ethyl alcohol
• in the case of tobacco products that are:
  • cigarettes, tobacco sticks or cigars, in units
  • packaged manufactured tobacco (other than cigarettes and tobacco sticks), in units and grams per package 
  • raw leaf tobacco, partially manufactured tobacco, or packaged raw leaf tobacco, in grams or kilograms
• in the case of vaping products that are:
  • vaping liquids, in litres
  • vaping solids, in kilograms
• in the case of wine, in millilitres or litres

Location and language of records

9. Persons that must keep records must keep them in Canada in English or French, unless otherwise authorized by the CRA.

10. To seek written authorization from the CRA to keep records outside Canada, a person or their authorized representative must make a written request to their regional excise office and provide the following information:

• a clear identification of the records requested to be kept outside of Canada, including the format of those records
• the complete address of the location where the records are requested to be kept
• a signed undertaking by the person making the request that they will be responsible for ensuring that any records kept outside Canada will be made available within 30 days for review or audit by the CRA upon request
• details of the circumstances that may justify keeping the records at a location outside Canada
• any other information considered pertinent to the request

Inadequate records

11. If the CRA determines that a person has failed to keep adequate records for purposes of the Act, the CRA may, in writing, require the person to keep specified records. In this case, the person must keep the records specified by the CRA.

12. If records continue to be inadequate, the CRA may serve the person a formal requirement letter, which describes the information that must be recorded in the records and outlines the consequences of the person's failure to comply with the requirement letter. Failure to comply may result in penalties.

Retention period

13. Every person that is required to keep records must retain them for six years after the end of the year to which they relate. For example, if a record relates to a return filed for the reporting period September 1, 2024, to September 30, 2024, the record must be retained until January 1, 2031. 

14. Every record that relates to a notice of objection with the CRA or an appeal or reference with the Tax Court of Canada must be retained until the objection, appeal, or reference is finally disposed of.

15. The CRA may, for any purpose related to the administration or enforcement of the Act, including the collection of amounts payable under the Act, serve or send a demand requiring any person that must keep records to retain them for any additional period that is specified in the demand. 

16. The demand may be:

• served personally
• sent by registered or certified mail

17. The person must comply with the demand and retain those records for the additional period specified.

Early destruction of records

18. A person that is required to keep records may destroy them before the end of the normal retention period if the CRA provides written permission to do so. To seek such permission, the person or their authorized representative must make a written request to their designated regional excise office and provide the following information:

• a clear identification of the records to be destroyed
• the format of the records to be destroyed
• the reporting periods to which the records relate
• details of any special circumstances that may justify destroying the records before the end of the normal retention period
• any other information considered pertinent to the request

19. If the CRA grants permission for a person to destroy records before the end of the normal retention period, that permission applies only to records that the person must keep under the Act. It does not imply permission to destroy records required to be kept under any other legislation.

Record-keeping methods

20. Records may be produced and kept in the following formats: 

• paper format (for example, traditional records of account, with supporting source documents)
• paper format, and later converted to and stored in an accessible and readable electronic format (including supporting paper source documents that are entered into an electronic record-keeping system)
• an accessible and readable electronic format 

21. Electronic record-keeping refers to electronic business systems that create, process, store, maintain, and provide access to financial records. It includes but is not limited to custom and commercial accounting software, point-of-sale systems, and Internet-based electronic commerce. Persons using electronic business systems must ensure that sufficient detail is captured and produced to ensure that compliance with the Act, including the calculation of excise duties, can be properly determined and verified.

22. Persons that must keep records are responsible for keeping them in a manner that will ensure the reliability and readability of the information recorded.

23. All records and supporting source documents originally produced in paper format must be kept in that format, unless they are saved in an acceptable electronic format. 

24. All records and supporting source documents originally produced in electronic format must be kept in an electronically readable format, even if printouts are available. 

25. Records are considered to be kept in an electronic format when information is entered directly into any device for electronic processing, manipulation, or storage on electronic or optical media.

26. Persons that keep records in an electronic format must ensure that all equipment and software necessary to render the records intelligible are available during the required retention period.

27. If a person contracts with an outside party to keep their electronic records, the records must still be available to the CRA upon request. 

Imaging

28. An electronic image is the representation of a paper record or source document that can be used to generate an intelligible reproduction of that record or document. The reproduction itself is also considered to be an electronic image. 

29. Intelligible reproduction means that:

• the reproduction is accurate and is made with the intention of it taking the place of the paper record or source document
• the reproduction gives the same information as the paper record or source document
• the significant details of the reproduction are not obscured because of limitations in resolution, tonality, or hue

30. Imaged reproductions of books of original entry and source documents must be produced, controlled, and kept in accordance with the latest national standard of Canada. This standard is outlined in the Canadian General Standards Board (CGSB) publication CAN/CGSB-72.34, Electronic Records as Documentary Evidence. To get this standard, go to the Canadian General Standards Board Catalogue.

31. If the CRA grants permission, paper records and source documents that have been imaged in accordance with the latest national standard may be destroyed and their electronic images kept as permanent records. 

32. A person that contracts a third party to image their records and source documents is responsible for ensuring that the imaging meets the latest national standards. 

Access to records for the purpose of inspection, audit, or examination

33. At all reasonable times and for any purpose related to the administration or enforcement of the Act, including the collection of amounts payable, an officer may inspect and audit or examine the records, processes, property, or premises of a person to determine whether that person is in compliance with the Act. This may include a request for the provision of records, including electronically using "Submit Documents" in My Business Account.

34. The officer may, at any reasonable time and for any purpose related to the administration or enforcement of the Act, do the following:

• enter any place where the officer believes the person keeps records or carries on any activity to which the Act applies
• stop a conveyance or direct that it be moved to a place for inspection or examination
• require any person to give the officer all reasonable assistance and to answer all questions relating to the administration or enforcement of the Act, such as providing information that will enable the determination of the amount of alcohol, cannabis, tobacco, or vaping product produced or manufactured, received, transferred, used, packaged, re-worked, sold, or disposed of by a person or providing access to records that are necessary to determine the transfer, receipt, retention, location, use, or disposition of an excise stamp
• require any person to both:
  • be present with the officer at a place designated by the officer, or by video conference or another form of electronic communication, and answer all questions relating to the administration or enforcement of the Act orally
  • answer such questions in writing, in any form specified by the officer
• open or cause to be opened any receptacle that might reasonably be considered to contain anything to which the Act applies
• take samples of anything free of charge
• seize anything by means of or in relation to which the officer reasonably believes the Act has been contravened

35. If the place is a dwelling-house, an officer may not enter without the consent of the occupant, except under the authority of a warrant issued under a court order. 

36. Dwelling-house refers to the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence, including: 

• a building within the area of land attached to a dwelling-house that is connected to the dwelling-house by a doorway or by a covered and enclosed passageway
• a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence 

Provision of records

37. The CRA may, for any purpose related to the administration or enforcement of the Act, including the collection of amounts payable under the Act, serve or send a notice requiring a person to provide any information, including a return, or any record, within any reasonable time that is stipulated in the notice. 

38. The notice may be:

• served personally
• sent by registered or certified mail
• sent electronically to a bank or credit union, as those terms are defined in subsection 123(1) of the Excise Tax Act, that has provided written consent to receive such notices electronically

39. If the information or record relates to one or more unnamed persons (that is, third parties), the CRA must first obtain judicial authorization. 

40. A judge may authorize the CRA to impose on a third party a requirement relating to a person or group of unnamed persons if the person or group can be identified with certainty and the requirement is made to verify their compliance with the Act.

41. On summary application by the CRA, a judge may order a person to provide any access, assistance, information, or records sought by the CRA. Before such an order is issued, the judge must be satisfied that the person was required to provide the access, assistance, information, or records requested but did not do so, and that none of the information or records required by the CRA is protected by solicitor-client privilege.

42. The accounting records of a legal counsel, including any invoice, voucher or cheque that relates to those records, are deemed not to be protected from disclosure by solicitor-client privilege and may be obtained by the CRA under a court order.

43. A person may appeal a court order to provide any access, assistance, information, or records sought by the CRA, but the appeal will not suspend the execution of the order unless so ordered by a judge of the court to which the appeal is made.

44. A person that fails or refuses to comply with a court order to provide any information or records required by the CRA may be found in contempt of court by a judge and may be subject to the processes and punishments of the court to which the judge has been appointed.

Search warrants

45. On application by the CRA and supported by information on oath, a judge may issue a warrant authorizing an officer to search a building, receptacle, or place for a thing and to seize it, if the judge is satisfied that there are reasonable grounds to believe that anything will be found that will afford evidence in respect of a contravention of the Act.

46. A search warrant must refer to the contravention for which it is issued and must identify the building, receptacle, or place to be searched and be reasonably specific as to the thing(s) to be searched for and seized. However, upon execution of the warrant, seizure is not limited to the things specified in the warrant but may extend to anything else that the officer believes, on reasonable grounds, is related to, or will afford evidence in respect of, a contravention of the Act.

47. An officer authorized by a warrant to search a computer system for data may do all of the following:

• use or cause to be used any computer system at the building or place to search any data contained in or available to the computer system
• use or cause to be used any equipment at the building or place to make a copy of the data and to render it in any form
• seize any such copy or rendering that may afford evidence in respect of a contravention of the Act

48. Any person that is in possession or control of any building or place where a search described in paragraph 47 is carried out must, on presentation of the warrant, provide to the officer carrying out the search all assistance that is necessary to execute the search.

49. An officer may exercise any of the powers referred to above without a warrant if the conditions for obtaining a warrant exist but it is not practical to obtain one due to exigent circumstances.

Foreign-based information or records

50. Foreign-based information or record is defined in the Act to mean "any information or record that is available or located outside Canada and that may be relevant to the administration or enforcement of this Act." 

51. The CRA may serve or send a notice requiring a person residing in Canada or a non-resident person that carries on business in Canada to provide any foreign-based information or record. 

52. This notice may be:

• served personally
• sent by registered or certified mail
• sent electronically to a bank or credit union, as those terms are defined in subsection 123(1) of the Excise Tax Act, that has provided written consent to receive such notices electronically

53. The notice must indicate:

• the period for providing the requested information or record (at least 90 days)
• a description of the requested information or record
• the consequences of failing to provide the requested information or record

Offences and penalties

54. For information on offences and penalties relating to the requirement to keep or provide access to records, refer to Memorandum EDM1-6-1, Administrative penalties under the Excise Act, 2001.

Further information