ATO Ruling

The following information has been extracted from the ATO Website.      www.ato.gov.au

Storage of paper records in electronic form (A)

30. The ATO considers that where it is intended to convert original paper records to microfilm or computer output microfiche, the conversion needs to be carried out in such a manner that the film/fiche represents a true and clear reproduction of the original documentation. The ATO acknowledges that microfilm/ microfiche technology, although not entirely obsolete, is not commonly utilised these days and that the conversion of paper records onto an electronic storage medium, by way of an imaging process, has effectively replaced that technology. The ATO therefore accepts the imaging of paper records provided the conversion process produces electronic copies that are a complete, true and clear reproduction of the original paper records. For instance, Optical Character Recognition conversion processes that do not produce a 100% accurate reproduction of original documents are not acceptable to the ATO.

Storage of paper records in electronic form (B)

12. A business using either a manual or a computerised accounting system may want to store and keep paper records in electronic form. Where paper records are produced or received in the course of carrying on business, the ATO accepts the imaging of those records onto an electronic storage medium provided that the electronic copies are a true and clear reproduction of the original paper records.

13. Where paper records are imaged and stored electronically the requirements of section 262A are satisfied if they are:

*

not altered or manipulated once stored;

*

retained for the statutory period of five years; and

*

capable of being retrieved and read at all times by ATO staff. The taxpayer is expected to provide appropriate facilities for the viewing of the electronic records kept in that format and where necessary, the printing of a paper copy or the provision of an electronic copy.

The ATO considers that paper records imaged and stored electronically should be:

*

read only; and

*

subject to adequate back-up control, i.e., a duplicate back-up copy of the stored records must be kept at all times at a safe location.

Paper records that can be imaged and stored include:

*

invoices, purchase orders, receipts, vouchers, credit notes, delivery dockets, etc.;

*

bank statements and other bank records and documents; and

*

any other paper source documents produced or received in the course of carrying on a business.

Original paper records that have been imaged onto an electronic storage medium need not be retained for the purposes of the Act.