Tax rules, thresholds and administrative procedures can change. Confirm current official requirements and obtain advice for material transactions or unusual facts.
The general tax rule is not the whole answer
Tax records are generally retained for a prescribed period, often measured from the end of the relevant tax year. Longer retention may be needed where a return was filed late, an objection or appeal is ongoing, records relate to long-term property or another law requires preservation.
Permanent property records
Purchase and sale documents, legal fees, improvements, reorganizations and valuations can affect adjusted cost base decades later. Do not destroy them merely because six years have passed since purchase.
Electronic records
Scanned records should remain readable, searchable and connected to the accounting entry. A bank feed is not always a substitute for an invoice. Preserve the original electronic data and maintain backups that can be restored.
Payroll and corporate records
Keep employee setup, TD1 forms, payroll registers, remittances, T4 slips, shareholder resolutions, minute-book records and tax elections. Corporate legal records often have a longer useful life than ordinary receipts.
Disputes and holds
Suspend destruction when CRA review, litigation, an insurance claim, employee dispute or transaction due diligence is possible. Document the hold and who authorized eventual destruction.
Retention schedule
Create categories: annual tax support, permanent asset records, payroll, legal/corporate, client engagement and website enquiries. Assign a retention trigger and secure destruction method to each. Review the schedule annually.
This article provides general Canadian tax information and is not a substitute for tax, legal, financial or investment advice based on complete circumstances.