How Long Should You Keep Your Tax Records? A CPA’s Guide for Canadians

Tax season wraps up, you file your return, and the paperwork on your desk starts to feel like clutter you would rather be rid of. But before you shred anything, it is worth knowing exactly what the Canada Revenue Agency expects from you. Getting this wrong can cost you at the worst possible time, right in the middle of an audit or reassessment.

At Ravinder Ahlawat, CPA, with more than 15 years of experience serving individuals and small businesses across Mississauga, Brampton, and Toronto, we regularly help clients organize their tax records and CRA record-keeping practices so tax season never becomes a scramble. Here is a clear, practical breakdown of how long to keep your tax documents in Canada, what actually counts as a record, and when it is finally safe to let go.

For most individuals and businesses, the CRA record retention period requires you to keep your tax records for six years from the end of the tax year they relate to. That means a 2025 tax return should generally stay on file until the end of 2031.

This rule applies even when:

• You filed your return online
• A specific form or schedule said you did not need to attach supporting documents

The CRA can still request that documentation later, so not having to submit something at filing time does not mean you are free to throw it away.

It is not just your filed tax return. The CRA expects you to keep the supporting documents and receipts that back up what you claimed, including:

• Receipts and invoices for expenses or deductions
• Cancelled cheques and bank statements
• T-slips such as T4s and T5s
• Notices of Assessment and Reassessment
• Records supporting any credits claimed, including medical, tuition, or donation receipts

If your accounting software only stores summary totals, keep the original source documents separately. A summary alone usually will not satisfy a CRA request.

GST/HST Registrants

If your business is registered for GST/HST, records related to tax collected and remitted must also be retained for six years. This is a common gap we see among small business owners during bookkeeping and tax preparation reviews.

Corporations That Have Dissolved

If a corporation winds down, records must still be kept for two years after the date of dissolution.

No Return Filed, or Suspected Misrepresentation

If a return was never filed, or the CRA suspects fraud or misrepresentation, there is effectively no time limit. The CRA can request records going back well beyond the standard six years in these cases.

Technically, yes, but only with the CRA’s written permission. You or an authorized representative must apply in writing to your local tax services office and explain the reason for the request. In practice, most people find it easier to simply hold onto digital files for a few extra years than to go through this process.

• Digital records are perfectly acceptable. The CRA allows electronic records as long as they can be reproduced in paper form if requested.
• Stay organized by year. A simple folder system, whether physical or cloud-based, saves an enormous amount of time if the CRA ever has questions.
• When in doubt, keep it longer. Records tied to capital property, investments, or anything with carry-forward implications, such as capital losses or home office claims, are often worth keeping well past the six-year mark since they may still be relevant to a future sale or transaction.
• Keep your Notices of Assessment indefinitely. They come in handy for mortgage applications, R

Many people assume record-keeping is a minor administrative task, something to deal with only if the CRA ever comes asking. In reality, good records protect you. They support every deduction and credit you have claimed, they speed up any review process, and they give you peace of mind that your filings can be backed up with proof whenever needed.

Business owners in particular benefit from a consistent system. Whether you are in transportation, hospitality, construction, healthcare, IT, or real estate, the type of records you generate may differ, but the underlying principle stays the same: what you cannot support with documentation, you may not be able to defend if the CRA asks questions later.

Six years is the standard retention period, but the safest approach is to think of your tax records the way you would think of insurance. You hope you never need them, but you will be glad you kept them if the CRA ever comes calling. If you are ever unsure whether something is safe to shred, it is always worth a quick check before you toss it out.

Not sure what to keep or how to set up a system that works for you or your business? With more than 15 years of experience in accounting, tax planning, and CRA compliance, Ravinder Ahlawat, CPA helps individuals and business owners across Mississauga, Brampton, and Toronto build simple, CRA-compliant record-keeping systems so tax season is never stressful.

Contact us today at 905 247 8001 or ravinder@ravindercpa.com to discuss how our CPA accounting and tax services can support you with reliable, organized, and audit-ready record-keeping.