What happens if the records are not kept?



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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You may be prosecuted and fined up to $3,000 by a court if you fail to keep adequate records.

You will not be convicted if you can show that any of the following statutory defences apply to you:

  • you did not know that you had an obligation to keep the records and you had no reason to suspect the obligation existed - if you suspected that the record keeping requirements applied to you, you won't be able to claim the benefit of this exemption, or
  • you did not know that you had an obligation to keep the records even after you had made all reasonable efforts to find out whether there was an obligation to keep the records, or
  • if you have made all reasonable efforts to obtain the information required but simply can't get it - if you had actual or effective control of the company or another entity which has the information, you would not be considered to have made a reasonable effort unless you used your position of influence in a genuine attempt to get the information required.

If you wish to take advantage of any of these exemptions, you will have to prove that reasonable grounds existed or that you made reasonable efforts. To do this, you will need to keep a record of the efforts you have made to get the information.

Last modified: 05 Dec 2006QC 18000