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Being able to see every time a dollar (or krone, I suppose) changed hands isn't enough for the taxman though. Last month Tarsnap Backup Inc. wrote me a cheque,

Being able to see every time a dollar (or krone, I suppose) changed hands isn't enough for the taxman though. Last month Tarsnap Backup Inc. wrote me a cheque, and there's a very clear electronic trail showing the money moving from Tarsnap's account to mine. But that electronic trail says nothing about the reason why the money moved. If Tarsnap was paying me a bonus, that would be taxable income. But if Tarsnap was merely reimbursing me for expenses I paid on my personal credit card, that's not taxable. The taxman can only tell the difference when they turn up at my door and ask to see my records showing why that money was paid. (The answer, incidentally, is that Tarsnap was reimbursing me for the AWS bill I paid via my credit card. Tarsnap, being a Canadian small business, can't get a US dollar credit card with a limit high enough to pay its AWS bills, but my personal credit card has a generous limit.)

beagle3 12y ago
The taxman would ask you to file that explanation; 4 years down the line, 5 times, to different auditors, at different times, using different forms. You are presumed guilty until you've proved your innocence. And if you've lost the paper trail - well, then, it's a taxable bonus. (Canada might not yet be this bad - no experience there. But I've filed taxes in 3 countries that are)
- icebraining 12y ago
  Around here, you're always required to file those records every month (electronically). Don't assume this gets you off the hook from having to produce them later to an audit, though - it's still your responsibility to hold on to them.
CarlHoerberg 12y ago
(Most often you can pay AWS by wire transfer if you contact them)
- cperciva 12y ago
  Yes, I've talked to them and nearly ended up going the wire transfer route. But using a credit card and reimbursing myself ended up being easier and cheaper.
blumkvist 12y ago
Checks are not electronic. If you shop at a store, the transaction record says what items you've bought. Nobody can stop the tax authorities demanding you to attach an invoice to every transaction a business makes. It would be trivially easy for businesses to implement it nowadays with the software they have. Many businesses do it this way already, if they use their invoicing vendor (xero,quickbooks) to accept the payment as well.

beagle3 12y ago

The taxman would ask you to file that explanation; 4 years down the line, 5 times, to different auditors, at different times, using different forms. You are presumed guilty until you've proved your innocence. And if you've lost the paper trail - well, then, it's a taxable bonus. (Canada might not yet be this bad - no experience there. But I've filed taxes in 3 countries that are)

icebraining 12y ago
Around here, you're always required to file those records every month (electronically). Don't assume this gets you off the hook from having to produce them later to an audit, though - it's still your responsibility to hold on to them.

CarlHoerberg 12y ago

(Most often you can pay AWS by wire transfer if you contact them)

cperciva 12y ago
Yes, I've talked to them and nearly ended up going the wire transfer route. But using a credit card and reimbursing myself ended up being easier and cheaper.

blumkvist 12y ago

Checks are not electronic. If you shop at a store, the transaction record says what items you've bought. Nobody can stop the tax authorities demanding you to attach an invoice to every transaction a business makes. It would be trivially easy for businesses to implement it nowadays with the software they have. Many businesses do it this way already, if they use their invoicing vendor (xero,quickbooks) to accept the payment as well.