Jacks on Tax

By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on February 5, 2025
Estimated reading time: 7 minutes

By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on February 5, 2025
Estimated reading time: 7 minutes

You can’t just claim anything. In preparing to file your income tax return, you will need to provide receipts for proof. Here’s why.

What receipts are required to submit/save for one’s personal tax return? I’m trying to trim the amount I need to put together to submit my taxes.

—Pepper

If you’re claiming any kind of tax deduction or credit, save the receipt and other back-up documents that support your claim—and hang on to it. Tax filers bear the “burden of proof.” That’s true even if you file a “nil return” to collect refundable credits and despite the success of electronic filing. Within our increasingly digital world, proper receipts and “records” still matter. As you prepare for tax season 2025, a primer on what to do to satisfy a future CRA (Canada Revenue Agency) auditor is in order.

The Canadian tax system is based on residency and self-assessment.

In other words, the onus is on every Canadian resident to accurately report their worldwide income in Canadian dollars, claim the deductions and credits properly applicable, and remit all resulting income taxes payable to the CRA.

If you’re an employee, this begins with completing a TD1 form (federal and provincial) to ensure withholding taxes are properly withdrawn by your employer.

Other taxpayers, such as pensioners, investors and proprietors, may be required to make quarterly tax remittances by instalment.

It is your right to arrange your affairs within the object, spirit and intent of the law. You may also go back and voluntarily correct errors or omissions for most provisions, up to 10 years back.

Deadlines, tax tips and more

In general, documentation, including receipts, must be kept for a minimum of six years from the end of the last tax year. According to the CRA, individuals and unincorporated businesses follow the calendar year, and corporations use their fiscal year.

Special circumstances require special rules, though. For example, when a business ceases,

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