How Long Do I Have to Keep Tax Records in Canada?

One of the most common tax questions people ask is: How long do I need to keep my tax records? The Canada Revenue Agency (CRA) has strict rules about record retention, and failing to comply could result in penalties.

Here’s a simple breakdown of how long you need to keep tax records based on your situation.

Income Tax Information Circular - Canada.ca

General Rule: Keep Tax Records for Six Years

For most individuals and businesses, the CRA requires that you retain books, records, and supporting documents for a minimum of six years from the end of the last tax year they relate to.

• For individuals: The tax year is the calendar year (Jan 1 – Dec 31).
• For corporations: The tax year is the corporation’s fiscal period.
• For businesses that close: Records must be kept for six years after the last tax year the business operated.

💡 Example: If you filed your 2023 tax return, you must keep your records until December 31, 2029.

Special Cases: When You Need to Keep Records Longer

While six years is the general rule, some situations require keeping records for a longer period:

📌 Corporations that dissolve – Must keep records for two years after dissolution. If a corporation merges, the new entity must retain records of all previous corporations.

📌 Registered charities & amateur athletic associations – Must keep donation receipts for two years (or ten years for property donations).

📌 Political contribution records – Must be kept for two years from the end of the year in which the contribution was made.

📌 Late-filed tax returns – If you file your return late, you must keep records for six years from the date you filed, not the tax year they relate to.

📌 Objections & Appeals – If you are disputing a CRA assessment, keep all relevant records until the dispute is fully resolved, even if it takes longer than six years.

📌 Property & Investment Records – Keep records related to capital property, investments, and real estate until six years after the year you sell or dispose of the asset. This ensures you have proof of the original purchase price and any adjustments needed for tax purposes.

What Counts as a "Tax Record"?

✔️ Copies of tax returns and Notices of Assessment
✔️ Receipts and invoices for deductions, business expenses, and charitable donations
✔️ Bank statements, investment records, and loan documents
✔️ Payroll records and T4 slips (for businesses)
✔️ Property purchase and sale documents

💡 Electronic records are acceptable as long as they are in a readable format.

Can I Destroy My Tax Records Early?

Yes—but only with written permission from the CRA. You must submit Form T137 (Request for Destruction of Records) or send a written request to the CRA explaining why you want to destroy them earlier than the required period.

⚠️ Caution: Even if CRA approves record destruction, you may need to keep certain records for other regulatory agencies (e.g., provincial tax laws, employment laws, or financial audits).

Final Thoughts

Keeping your tax records organized is essential for avoiding CRA issues, handling audits, and ensuring you can support any deductions or claims. As a general rule, keep your tax documents for at least six years, and longer if they involve property, investments, or legal disputes.

If you’re unsure about record retention or need help with tax compliance, consult a CPA to ensure you’re meeting all CRA requirements.

‍

--

This is not legally binding tax advice. This is educational analysis. Say hello if you need help.

hello@taxesmadesimple.ca

WhatsApp - 613.600.4194

‍