Keeping complete, organized financial, and tax records is well worth the effort.

Keeping organized books and records of your income and expenses not only helps to fill out income tax returns, it may keep you out of jail.

According to the Income Tax Act, every person carrying on business and every taxpayer is required to keep records and books of account at their place of business and residence. The records must be in such a form and contain information that will enable the calculation of taxes payable. By "record" Canada Revenue Agency ( CRA) means any document containing information relevant to the determination of a taxpayer's liability for tax. This could include letters, diagrams, or even notes on a napkin. The only way to prevent disclosure of such documents is to ensure they fall under solicitor-client privilege.

Failing to keep proper books, that is, records to determine taxes payable, is an offence under the Income Tax Act, which on summary conviction could bring a fine of $1,000 to $25,000 or the fine and a prison term of up to 12 months. Destruction of books and records for the purpose of escaping tax is a criminal offence that can cost you from 50 per cent to 200 per cent of the tax sought to be evaded and/or up to five years behind bars.

CRA may require the production of information and documents by issuing a letter to that person requiting them to provide the information or documents within a reasonable time stipulated in the letter, often called a Requirement letter. Note: CRA often sends out a more benign request for information; the likelihood of jail time for failure to respond only applies to the Requirement letter.
 
Ignore the Requirement letter at your risk. It is also an offence not to provide the information demanded in the Requirement letter within the time specified or to refuse to assist a CRA auditor. Such offences are strict liability offences, meaning the Crown need not prove the failure to comply was intentional to obtain a conviction.

~ 10 Secrets that Revenue Canada Doesn’t want you to know by David Voth

Source: www.cga-online.org
 
EFILE
 
EFILE is the Canada Revenue Agency's ( CRA) name for an electronic filing process. If you decide to EFILE your 2006 return it will to go directly from computer system to the CRA over the Internet.

 
Filing Due Date

Most 2006 returns must be filed by April 30, 2007. However, if you or your spouse are self-employed or are a partnership member, the filing due date is June 15, 2007. Unpaid tax bears interest from May 1, even though filing is not required until June 15.