If a CCRA auditor knocks at the door of your business, don't be surprised if you are asked to produce your books and records in electronic format. If you keep your records in an electronic format, CCRA auditors are within their rights to ask for your discs, tapes etc which store your financial information. Once they have obtained your electronic records CCRA will download the information into their audit software programs. This should allow them to conduct their audits more efficiently.

The Income Tax Act requires taxpayers to keep the majority of their books, records and their related accounts and source documents for a minimum of six years (with shorter periods prescribed on the cessation of business). Any person who keeps records electronically must retain them in an "electronically readable format" for this same period.