Read Time: 2 minutes

This is the time of year when many of us are working on our tax returns—or are just starting to think about it! Whatever stage you are at, one important question that often daunts us is: “How long do I need to keep my supporting documents?” Well, the magic number is… six, maybe seven, and sometimes ten. Check with your accountant or association. If in doubt, keep it till your confident. 

That’s six, seven, or ten years to keep all records and supporting documents accompanying your tax returns, according to information from the CRA (Canada Revenue Agency).

Organizing Tips for Tax Record Retention

Label Your Tax Folder

We recommend “Tax year XXXX / Shred in XXXX” and continue this format for all future tax folders. This way, you can more easily remember when to purge documents that will no longer be needed. Note that if you file your tax return late, you will have to begin the year count from the date you file your return. In that case, your tax folder label becomes even more critical so you don’t get confused with the years you filed on time.

Retaining Important Documents

What about other important documents like property deeds and other historical information? You should never discard records for the sale or disposal of property or documents pertaining to a sale or liquidation of your business. There are special requirements for record retention for business documents which your accountant can provide you with. Always consult with a tax preparation specialist or review the plentiful information on the CRA website.

For complete details on Books and Records Retention/Destruction in Canada, see CRA’s Information on this topic.

Avoiding Penalties

By knowing what supporting documents to keep and for how long you have to store them, you can avoid potential penalties should you ever need to provide CRA officials with more information. This will give you one less thing to worry about!

Organize. Optimize. Profit.
Read more about Optimizing Workflow and Organizing Personal Spaces
Schedule your 25-minute inquiry session.