30 July 2001 Ruling 2001-0091313 - BOOKS AND RECORDS

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Do the requirements of subsection 230(1), specifically, that the person "shall keep records and books of account ... at the person's place of business or residence in Canada or at such other place as may be designated by the Minister", prohibit a person from relying on an outside agency, thee taxpayer, to retain electronic records at a location other than the persons place of business?

Position TAKEN:

Refused to rule.

Reasons:

Whether persons can rely on the taxpayer to maintain records in compliance with subsection 230(1) of the Act is not a question of interpretation but of administration of the Act. These questions are handled by the TSO. All documentation was forwarded to the Calgary TSO.

XXXXXXXXXX 2001-009131
T. Young, CA
July 30, 2001

Dear XXXXXXXXXX:

Re: Request for an Advance Income Tax Ruling
Books and Records - Document Imaging

This is in reply to your letter of June 26, 2001, wherein you requested an advance income tax ruling on the record keeping requirements of sections 230 and 230.1 of the Income Tax Act (the "Act").

We have reviewed your request, and, unfortunately, will be unable to issue the advance income tax ruling requested. Essentially, the issue raised relates to how we will apply the administration and enforcement provisions of the law, and is not one of interpretation. Whether or not the requirements of the Act with respect to the retention of records will be satisfied, as set out in Information Circular IC78-10R3, is dealt with at the local level. This is noted in paragraph 25 as follows:

The Department is prepared to offer advice on keeping, maintaining, retaining, and storing electronic records. You can get this advice from your tax services office. This advice should not be considered or viewed as an audit, inspection, or a ruling issued by the Department. The record keeper is responsible for keeping, maintaining, retaining, and safeguarding records.

As we are unable to provide an advance ruling in respect of the transactions in your letter, we have closed our file on this matter and a refund of your deposit will be sent to you under separate cover. Finally, we have forwarded your request to the Calgary Tax Services Office, which can provide assistance to you on this matter.

Yours truly,

John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch

c..c. Gerry Burke, Assistant Director Client Services
Calgary Tax Services Office