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Tip of the Week
One of the issues with CRA audits is having receipts for all of the expenses that you are claiming for tax purposes. There are a couple of examples that have plagued us over the years, dollar stores, pay phones and parking meters. Pay phones are no trouble anymore because nearly everyone has a cell phone. Dollar stores now take debit, but parking meters remain a concern.
I have given advice that a parking ticket is a better idea than putting coins in a meter. If you use coins there is no receipt, if you get a ticket that is excellent documentation.
This picture was taken during a recent business trip to St. John’s Newfoundland. The municipality has added card readers to old coin parking meters so that people now have a choice, credit card or cash. This is an intermediate step. Larger cities have totally replaced meters with kiosks that ask for your license number and a credit card swipe. This documentation is even better, it will have your license number, date, time city and your credit card – a perfect receipt.
If you have a choice and you are parking for business purposes, use your debit or credit card so that you can prove you were the one who paid for this expense.