You’re holding onto tax documents for safekeeping and wondering how long to keep these tax records. You don’t even remember when they were filed. However, taxpayers in Canada must retain records for a specified period. Failure to follow rules can trigger CRA audits and fines.
But don’t worry. This guide breaks it all down in plain language, without the complicated tax-speak. This blog will focus on everything you need to know about how long to keep tax records in Canada and why it matters.
What Counts as a “Tax Record”?
Before we get into the timelines, let’s talk about what you should be keeping.
If it helps support something you claimed on your taxes, it counts as a tax record. That includes:
- Pay stubs and T4S
- Receipts for expenses (business, medical, home office, etc.)
- Invoices you’ve sent or received
- Bank and credit card statements
- Records of any income (including tips, rental income, freelance gigs)
- Donation slips
- Mileage logs if you use a car for work
Also consider keeping:
- RRSP contribution receipts
- Tuition and education credit slips (T2202)
- Canada Child Benefit (CCB) statements
- Employment Insurance (EI) records
- Old tax slips for carry-forward amounts like capital losses, tuition, etc.
In short, if it could help you prove what you earned or spent, hang onto it. These can all be relevant in future tax years.
The Golden Rule: 6 Years
The CRA wants you to hold onto most tax records for six years. Tax year-end marks the beginning of the retention period.
Example:
Filed your 2023 taxes in April 2024? Keep the records from January 1, 2024, through Dec 31, 2029.
Filed Late? Keep Them Longer
Filed your return late one year? That six-year period starts from the day you filed, not the tax year. So if you filed your 2021 return in 2023, don’t shred anything until 2029.
Why Six Years?
According to the Canada Revenue Agency (CRA), you will be allotted six years to verify your tax filing and examine your audit record. You may need to present them to tax professionals or during reviews. Absence of required paperwork can pose penalties and consequences.
This rule applies whether you’re an individual with basic T4 income or someone running a side hustle. It’s about proof. Residents need to know how long to keep tax returns in Canada for audit purposes.
How Long to Keep Tax Returns in Canada?
Your actual tax returns (the forms you filed) should be kept for at least six years, but many experts recommend keeping them forever.
Why? They can come in handy for future applications (mortgages, student loans, even immigration) or if the CRA questions something from years ago. You don’t want to go digging for something you’ve already thrown out.
- CRA Rule: You must keep tax returns for six years, starting from the end of the tax year to which they apply. For example, a 2023 return should be kept until at least the end of 2029.
- Mortgage Applications: Lenders often ask for previous tax returns to verify income.
- Student Loans & Grants: You may need them for financial aid, especially if applying as an independent.
- Immigration & Visa Applications: Tax history can support your proof of residency or income.
- Audit Preparedness: If CRA flags something from an earlier year, having your return on hand saves stress.
- Historical Accuracy: Returns help track long-term changes in income, deductions, or business performance.
The Canada Revenue Agency provides guidelines on how long to keep tax records in Canada.
What If You Run a Business?
If you are self-employed, run a small business, or do freelance work, the same six-year rule applies—but the kinds of records you keep are wider. Here is the paperwork you need:
- All income records (invoices, e-transfers, PayPal summaries, etc.)
- Business expenses (equipment, software, office rent, supplies)
- GST/HST returns
- Payroll info, if you have employees
- Inventory lists
- Vehicle and travel records
If your business closes, the rule is still the same—keep everything for six years after your last tax year.
What About Corporations?
Incorporated businesses are advised to save the records for six years after completing the tax year. However, if you face setbacks in your business or the corporation dissolves, you need to keep all documents for at least two years after business closure. This is why businesses are encouraged to keep track of how long to keep tax returns in Canada. This information will help to stay ahead of tax complications and organized paperwork.
If your company merges with another or changes structure (like an amalgamation), those original records should still be kept for six years from the original dates.
Rental Properties, Stocks, and Assets
If you’ve ever owned real estate, investment properties, or stocks, this part is for you.
Whenever you buy or sell something valuable, like a home, land, or shares, you will want to keep all related documents for six years after you sell.
This includes:
- Purchase agreements
- Sale contracts
- Receipts for renovations
- Lawyer fees
- Mortgage payoff papers
Why? Because when you sell, you might need to show what you paid, what you spent on improvements, and what you made in profit. Without those papers, you could end up paying more tax than you should.
If You’re in a Dispute or Audit
Let’s say the CRA audits you, or you’re objecting to something on a past return. In this case, don’t touch a single piece of paper until it’s completely resolved.
Once the issue is settled, only then does the six-year clock begin—or you may be told to hold on longer.
Estates, Trusts, and Executors
Managing someone else’s estate? Here’s a big one: don’t destroy anything until you get a clearance certificate from the CRA. This applies even if that person has passed away or their taxes were simple.
As an executor or legal representative, you may be held personally responsible if taxes are still owed and you destroy the records too soon. Estate records to retain:
- Final T1 and T3 returns
- Notices of assessment
- Will and probate documents
- Records of distributions to beneficiaries
When the CRA Says “Don’t Destroy Yet”
The CRA can tell you to hold onto your records longer than six years, especially if:
- There’s an ongoing audit or investigation
- You’ve filed objections or appeals.
- They need more time to review something in your file.
If they do, they’ll notify you by mail or directly during an audit.
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Can You Keep Digital Records?
Yes! The CRA is fine with digital versions, as long as they’re clear, complete, and accessible.
You can scan receipts or store everything in cloud storage, but make sure:
- You can pull them up easily if the CRA asks
- They haven’t been altered.
- They’ve backed up in case your computer crashes.
Pro tip: Name your files clearly (like “2023_Tuition_Receipt.pdf”) and keep folders by year. It will save you hours down the line.
How long to keep tax records in Canada
Want to dispose of your documents before the six years are up? You’ll need a CRA permit.
Six-Year Rule: Financial records, including invoices and receipts, should be kept for a minimum of six years after the tax year-end.
Want to discard them early? You must:
- Submit Form T137 – Request for Destruction of Records
- Or write directly to your local CRA tax services office explaining your reasons.
Wait for written approval before dumping the papers.
Destroyed without approval?
- CRA can issue penalties
- You could be held legally responsible, especially if you’re audited and can’t produce the documents
If audited or reviewed, and records are missing, you’ll be at a serious disadvantage, even if you were honest on your return.
Keep This in Mind:
Here’s a quick cheat sheet you can follow:
| What to Keep | How Long |
|---|---|
| Personal tax returns | At least 6 years (longer is better) |
| Notices of Assessment | Forever (recommended) |
| Business records | 6 years after the tax year |
| Property purchase/sale docs | 6 years after selling |
| GST/HST returns | 6 years or more |
| Donation receipts | 2–6 years (depending on the situation) |
| Estate tax records | Until you receive clearance from CRA |
| Records for objections/audits | Until fully resolved (then 6 years) |
What Happens If You Can’t Produce Records?
CRA wants your records stored in Canada—either at your home or your business address.
If your files are kept somewhere outside Canada (including on servers abroad), you need permission from the CRA. Just because you can access your Google Drive from your laptop in Toronto doesn’t mean it’s automatically compliant.
Let’s say the CRA audits you and asks for receipts for business expenses you claimed two years ago. But you can’t find them.
They can:
- Deny your deductions
- Reassess your return
- Charge interest and penalties
And that audit might trigger reviews for other years.
Need help sorting your tax records? Let’s talk.
At SMR CPA, we don’t just help you file and move on. We stick with you year-round, making sure your books are clean, your records make sense, and you are ready to handle the questions with ease. You handle your finances, we’ll handle the paper trail. Contact us now and schedule your tax clarity session today!
