How long should a Canadian small business keep tax records?

Start with the rule, then check the exceptions

CRA generally requires records and supporting documents for six years from the end of the last tax year they relate to. Its guidance describes situations with different retention periods, including late-filed returns, objections or appeals, records with lasting relevance and specific instructions from CRA.

Before destroying a group of records, check the rules for that record type and the business's circumstances. This article is an organization guide, not permission to delete old files.

Separate a receipt from the records supporting it

A submission confirmation helps establish that a return was sent. It does not replace the transactions and documents behind the return. A useful archive connects the final return, the submission acknowledgement, payment evidence and the underlying bookkeeping package without treating them as interchangeable.

• Use a clear business, tax type, period and document name.
• Keep the final version distinct from drafts.
• Make sure the files remain readable and accessible.
• Retain an independent backup and a record of where the originals are kept.
• Review retention with the preparer before removing older material.

Check storage location as well as duration

CRA generally requires records to be kept at the business or residence in Canada unless written permission allows another location. Records stored abroad and merely accessed from Canada do not count as being kept in Canada. Check your storage arrangements instead of assuming any online folder satisfies every requirement.

Use the calendar as an index, not the whole archive

Compliance Calendar can keep a reference or note against the relevant filing. Where subscription document storage is available, an attachment can make a confirmation easier to find. Keep your complete records and independent backups separately; the calendar does not establish that every tax or corporate-law retention requirement has been satisfied.