Take nothing for granted

“Let’s get to it. Its Story time!”, again. I just met with a client who told me an interesting story. While dealing with the CRA on other matters the client was told by the agent that two GST returns had not been filed. The agent went on to tell the client that they needed to be filed immediately and that the CRA had estimated how much he owed. The agent also stated that the amounts should be paid immediately. The client told the agent that he had filed the returns, and paid them, and had proof. The agent said that they would require proof in order to make any changes.

Luckily the client had kept copies of everything and had kept them filed in such a way as to be easily found and accessible. The client had kept copies of the returns and more importantly keep copies of all the documents and receipts necessary to substantiate that payment had been made and received by the CRA. If not for keeping all the records the client would have had to pay the amounts twice plus some interest and penalties.

Bottom line is that whether you do things electronically or in person it is important to keep electronic copies as well as paper copies of important documents. On a scale of 1-10 I would consider payment information, and CRA documents as being 11’s. So unless you like throwing your money away (giving it to the CRA is definitely throwing it away) keep your records organized and make sure that you don’t leave yourself open to extortion purely because neither the CRA or you can find a few pieces of paper.