How Long Should You Keep Tax Records in Canada?

Who this applies to

Individuals, self-employed people and businesses in Canada. The same general six-year rule applies under the Income Tax Act and the Excise Tax Act, which covers GST/HST, as well as the rules for payroll records.

When the six years start

The clock starts at the end of the tax year the record relates to, not the date on the receipt:

• Individuals and self-employed people: the tax year is the calendar year.
• Corporations: the tax year is the corporation's fiscal period.

For example, a receipt from March for an individual's tax year ending December 31 is kept for six years from that December 31.

When you need to keep records longer

• Late-filed returns: if you file an income tax return late, keep the records for six years from the date you filed it.
• Long-term property and business history: records about long-term purchases and sales of property, the share registry, or other history that would affect the sale, liquidation or wind-up of a business must be kept indefinitely.
• When the CRA asks: if the CRA wants records kept longer, an official will tell you in person or by registered mail.

Where records must be kept

Records must be kept at your place of business or your residence in Canada, unless the CRA gives you written permission to keep them elsewhere. Records stored outside Canada and accessed electronically from Canada do not count as being kept in Canada.

Paper or digital?

The CRA accepts records kept on paper, paper records converted to a readable electronic format, and records created electronically. Records that were created electronically must be kept in an electronic, readable format, even if you also have printouts. Back up electronic files.

Can records be destroyed early?

Only with permission. If you want to destroy records before the end of the retention period, you have to ask the CRA first.

What we recommend in practice

• Keep one folder per tax year, with the return, the notice of assessment and every supporting document.
• Scan paper receipts as you get them, and keep the scans with your bookkeeping records.
• Keep property, investment and company records (share purchases, major assets) in a separate permanent file.
• Let your bookkeeper keep the monthly records organized, so nothing depends on finding a receipt years later.

Official sources

• Where to keep your records, for how long, and how to request permission to destroy them early (Canada Revenue Agency)
• Acceptable format, imaging paper documents, and backing up electronic files (Canada Revenue Agency)
• Keeping records (Canada Revenue Agency)

This guide is general information for Canadian taxpayers and small businesses. It is not tax, legal or financial advice for your situation, and rules change. Check the official sources linked above or book a consultation before acting on it. See the full disclaimer.