How long to keep business records in Canada

The general rule: six years from the end of the tax year

The CRA’s general rule is that you keep your books and supporting documents for six years from the end of the last tax year they relate to. The tax year is the fiscal period for a corporation and the calendar year for an individual. Trusts vary by type. Similar six-year rules appear in the legislation covering income tax, GST/HST, CPP and EI.

The clock does not start when you file, or when you receive a notice of assessment. It starts when the tax year ends. A receipt dated in March 2026 for an individual is kept until six years after December 31, 2026. For a corporation with a June 30 year end, the same logic runs from each June 30 instead.

A simple example of when the clock starts

Suppose a sole proprietor buys a laptop in 2026 and the expense belongs to the 2026 tax year. The six years run from the end of 2026, so the receipt is generally kept until the end of 2032. This is an illustrative case. The laptop is also a long-term asset, which changes the answer, as the next section explains.

A practical habit is to label folders or digital archives by tax year and add a “keep until” year to each one. That avoids guessing later, and it makes a periodic clean-up quick instead of risky.

Exceptions that extend the period

The six-year rule is a starting point. The CRA lists several situations where records must be kept longer. If you file an income tax return late, the six years run from the date you filed that return. If you have not filed GST/HST returns, you must still file them and keep the supporting records, even for periods that ended more than six years ago.

If you have filed a notice of objection or an appeal, keep the related records until the latest of three dates: the objection or appeal is resolved, the time to appeal further has passed, or the six-year period ends. The CRA can also require a longer period, in which case an official tells you in person or by registered mail. If a business that is not incorporated closes, it generally keeps its records for six years from the end of the tax year in which it ended. A dissolved corporation must keep its records for two years after the date of dissolution.

Long-term assets, share records and corporate history

Some records are not tied to a single year. The CRA says records about long-term acquisitions and disposals of property, the share registry, and other historical information that affects a sale, liquidation or wind-up of the business must be kept indefinitely. In practice, that points to purchase documents for buildings, equipment and land, plus share registers and records of past share transactions.

Capital cost allowance claims often span many years, so the original invoice may be needed long after the purchase year. Ask your accountant how long to keep the supporting documents for each asset and what else to retain when it is sold. Old balances such as shareholder loans can also matter if an earlier transaction is reviewed.

Scanning, electronic records and backups

Records originally created on paper can be kept on paper, or converted to an acceptable electronic image. Records originally created electronically must be kept in a readable electronic format, even if you also print them. A paper printout alone does not replace an electronic original.

The CRA says an image must be an accurate reproduction meant to take the place of the paper, give the same information, and not obscure significant details through poor resolution. If imaging is done to the national standard the CRA refers to, the images become the permanent records and the paper can be destroyed. If you have any doubt, the CRA advises getting legal advice first. Commercial scanning software should be checked against that standard too.

Backups are a separate duty. Keep copies of your electronic business information, store them away from hazards, and make sure they can be restored in a format the CRA can use. If an outside party holds your records, they must still be available to the CRA when asked.

Where records must be kept

Records must be kept at your place of business or residence in Canada, unless the CRA gives you written permission to keep them elsewhere. Electronic records stored on a server outside Canada but only accessed from Canada generally do not count as kept in Canada. This matters if your accounting software hosts data abroad, so ask your provider or accountant before assuming a cloud account satisfies the rule.

The CRA may accept electronic copies held abroad under certain conditions, including that they are true copies, readable by CRA software and detailed enough to support your returns. Permission is requested in writing from your tax services office.

Destroying records early

You need the CRA’s written permission to destroy books and records before the required period ends. You or an authorized representative can either complete Form T137, Request for Destruction of Records, or apply in writing to your tax services office. Destroying records without permission can lead to prosecution.

That permission covers only records required under laws the CRA administers. It does not override other federal, provincial, territorial or municipal requirements, such as those from lenders, insurers, or other regulators. Check the current form on canada.ca before you send it.

GST/HST and payroll records

If you carry on business in Canada, file a GST/HST return or claim a rebate or refund, your records must be adequate to calculate the tax you owe or collect and any amount refunded or deducted. Keep the purchase invoices or receipts that support every input tax credit you claim, and sales invoices with the information that lets registered customers support their own claims. For GST/HST, the six-year period generally starts after the last year a record may be needed for reporting.

If you deduct income tax, CPP contributions or EI premiums, keep the hours worked by each employee and the amounts withheld. Also keep each employee’s TD1 form, any CRA letters of authority that reduce deductions, all information slips you issued, returns you filed and any registered pension information. The CRA’s payroll page does not state a separate retention period, so the general rule and the guidance in Information Circular IC78-10 are the places to confirm timing.

What to ask your accountant

Before any clean-up, list what you hold by tax year and ask which items are tied to assets, shares, disputes or unfiled periods. Ask whether your scanning process meets the standard, where your software stores data, and which records you should still keep for lenders or insurers. For the related question of what supporting context an accountant needs alongside bank statements, see the separate article linked below.