13 December 2006 External T.I. 2005-0156201E5 F - Records on Heat Sensitized Paper -- summary under Evidence

A taxpayer receives receipts from suppliers on thermal paper, the information on which naturally disappears after a few months. After noting that it “is CRA's practice to disallow expenses that are not supported by appropriate documentation, unless there is other satisfactory evidence to support the amount claimed” and that Keating (2001 DTC 3750) indicated “that non-compliance with subsection 230(1), in and of itself, is not sufficient to conclude that an expense was not made, and that in such a case, the taxpayer bears the burden of proving that the expense was incurred,” CRA stated:

[I]f the taxpayer is unable to obtain a proper receipt or invoice from the supplier, the CRA expects the taxpayer to record in the taxpayer’s books and records the name and address of the supplier, the date of payment, the amount paid, the method of payment, and the details of the transaction (including a full description of the goods or services). Also, in this case, the taxpayer would be well advised to keep all other corroborating evidence of purchases (including, for example, proof of payment, such as cheques, bank statements, credit card receipts and credit card statements).

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d7 import status
Drupal 7 entity type
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Drupal 7 entity ID
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