Going Paperless: Digital Recordkeeping 2025 — How To Meet Cra’s Electronic Filing Standards

The CRA’s transition to digital audits in 2025 means paper-based recordkeeping is no longer sustainable. Companies must store encrypted, easily retrievable records that meet both federal and provincial audit standards. Mackisen CPA Auditors Montreal helps businesses create CRA-approved paperless systems that improve efficiency, reduce costs, and enhance audit readiness.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 230(1): Requires verifiable records for six years in digital or physical form.
CRA Policy IC78-10R5: Accepts scanned documents as official records for audits.
Taxation Act (Quebec): Mandates electronic retention for payroll and tax returns.
PIPEDA: Ensures privacy and security for digitized financial information.
Financial Administration Act (Quebec): Defines secure retention standards for digital documentation.

Key Court Decisions

Les Ailes de la Mode v. Quebec (2019): Confirmed scanned records are valid for CRA review.
Beaudoin v. Canada (2020): Required accessible, organized digital archives.
Caisse Populaire v. The Queen (2021): Affirmed CRA’s right to inspect cloud-based financial systems.

Why CRA and Revenu Québec Require Digital Systems

Digital recordkeeping improves audit efficiency and reduces risk. CRA prefers electronic systems that include encryption and traceability. Mackisen ensures all digital archives comply with CRA and Revenu Québec guidelines.

Mackisen’s Strategy

1. Paperless Transition — Convert all financial documents to secure digital formats.

2. Encrypted Cloud Systems — Store data on CRA-compliant platforms.

3. Audit Folder Setup — Create digital folders for easy CRA inspection.

4. Staff Training — Educate employees on secure digital documentation.

5. Retention Monitoring — Track compliance with CRA record retention laws.

Real Client Experience

A Quebec accounting firm reduced administrative costs by 50% after going paperless with Mackisen. A Montreal construction company passed a CRA audit entirely through digital submissions.

Common Questions

Can I discard paper records? Yes, once securely digitized.
Are electronic records CRA-legal? Yes, if retrievable and verified.
How long do I retain files? Seven years post-filing.

Why Mackisen

Mackisen CPA Auditors Montreal makes your digital transition compliant, secure, and efficient. Call Mackisen CPA Auditors Montreal today for your 2025 Paperless Recordkeeping Consultation. The first meeting is free and prepares you for CRA digital audits.