What must a company keep as records for a complete and correct corporation tax return?

A company must keep proof of transactions, such as receipts and expenses, to ensure a complete and correct corporation tax return. This documentation is essential because it allows the company to verify income, calculate allowable expenses, and substantiate the figures reported in the tax return. Accurate records help in providing evidence to tax authorities regarding the income earned and the expenses incurred, which is crucial for compliance and audit purposes.

The requirement for keeping detailed records supports the integrity of the financial reporting process, allowing for proper assessment of tax liabilities. Receipts and other proof of transactions serve as documentation that can substantiate claims made in the tax return, ensuring that all allowable deductions are adequately supported.

Maintaining minimal records or just sales invoices can lead to incomplete or incorrect reporting, which could result in penalties or disputes with tax authorities. Thus, comprehensive record-keeping is fundamental for effective tax management and compliance.