Incorporated contractor dealing with CRA review letter
My employers pay my corporation and my corporation pays that money to myself through a sole proprietorship.
Nearly all income except for minor expenses is paid from my corporation to my sole proprietorship, claimed as a consulting fee on my corporate return. Likewise on my personal/sole proprietorship that income received from my corporation is reported as "business income."
I recently got a review letter from the CRA for years 2014-2015. They're asking for supporting evidence for expenses.
To be honest, I didn't keep very good records during this period. When I transferred money from corporation to my personal account I didn't keep detailed records or make invoices. The CRA review letter is asking for 1) Detailed transaction logs or general ledger entries and 2) Invoices and receipts. I don't have any of these, but I have my personal income tax return which matches exactly the expense claimed.
I'm wondering what is the best way to proceed in this situation.