Recordkeeping — How Long to Keep Your Tax Records

Introduction
Understanding how long to keep your tax records is essential for individuals, businesses, landlords, self-employed professionals, and corporations across Canada. CRA and Revenu Québec require taxpayers to maintain books, records and documentation that support every income, deduction, credit, GST/HST filing, QST filing and payroll entry. Failing to keep records properly can lead to denied deductions, reassessments, penalties, interest and even gross negligence claims. This guide explains how long to keep your tax records according to CRA and Québec rules, what documents must be retained, how to store them, and best practices to stay audit-ready at all times.

Legal and Regulatory Framework
How long to keep your tax records is governed by:

• the Income Tax Act
• the Excise Tax Act (GST/HST)
• Québec’s Taxation Act
• CRA IC05-1R1 — “Electronic Record Keeping”
• Revenu Québec’s recordkeeping regulations
• corporate law requirements for minute books
• payroll legislation (QPP, QPIP, CPP, EI, CNESST)

Both CRA and ARQ have the legal right to inspect records for any tax year that remains open to reassessment. Proper retention protects taxpayers.

Standard Record Retention Period: 6 Years

The general rule is simple:
You must keep all tax records for six years after the end of the tax year.

Examples:

• 2024 tax return → keep records until December 31, 2030
• 2025 GST filings → keep until December 31, 2031
• 2023 payroll slips → keep until December 31, 2029

This is the baseline rule for how long to keep your tax records, but there are many exceptions.

Exceptions — When You Must Keep Records Longer

1. Records for Objections or Appeals

If you file a Notice of Objection or appeal:

• you must keep records until the objection/appeal is resolved,
AND
• an additional six years after resolution.

CRA and ARQ require extended retention because these disputes may span multiple years.

2. GST/HST or QST Issues

Sales tax records often extend beyond the standard six years because:

• CRA can reassess GST/HST if negligence or misrepresentation is suspected
• Revenu Québec is stricter and frequently requests records for more than six years

Keep GST/HST/QST records permanently for high-risk industries.

3. Real Estate and Capital Property Records

Capital transactions require keeping:

• purchase agreements
• renovation receipts
• legal fees
• financing documents
• appraisal reports

These must be kept at least six years after the property is sold, not purchased.

For principal residence claims, keep occupancy evidence for life + six years.

4. Corporate Minute Books and Shareholder Records

Corporations must keep:

• articles of incorporation
• share registers
• director resolutions
• shareholder agreements

These must be kept permanently.

These are essential parts of how long to keep your tax records for corporations.

5. Long-Term Asset Depreciation (CCA)

Documents for depreciable property (vehicles, equipment, buildings) must be kept:

• for the entire time the asset is owned
• plus six years after you sell or dispose of it

6. Business Loss or Carryforward Claims

Records supporting:

• non-capital losses
• net-capital losses
• SR&ED credits
• ITCs
• QST ITR carryforwards

must be retained until the last year the carryforward is used, plus six years.

7. Missing Returns or Failure to File

If a return was never filed:
There is NO limitation period.
CRA and ARQ may request records decades later.

What Records You Must Keep

1. Income Records

• invoices
• sales receipts
• rental agreements
• gig-economy app statements
• real estate contracts
• PayPal/Stripe/Shopify statements

2. Expense Records

• receipts
• credit card statements
• mileage logs
• subcontractor invoices
• supplier bills
• travel evidence
• home-office calculations

3. GST/HST and QST Records

• returns
• ITC/ITR documentation
• tax-included invoices
• POS system reports

4. Payroll Records

• pay stubs
• T4, RL-1, PD7A statements
• QPP/QPIP contributions
• CNESST declarations
• employment contracts

5. Banking Records

• bank statements
• cancelled cheques
• e-transfer lists
• deposit slips

Understanding how long to keep your tax records means maintaining everything needed to justify each line on your tax return.

Electronic vs Paper Records

CRA and ARQ both accept electronic records if they are legible, accessible and unaltered.

Acceptable formats include:

• PDF scans
• cloud storage copies
• accounting software backups
• digital images of receipts

You must still keep electronic records for the full retention period.

Key Court Decisions

Courts consistently rule that:

• taxpayers carry the burden of proof
• missing receipts justify denial of deductions
• electronic records are valid if reliable
• inadequate documentation permits CRA/ARQ to estimate income
• failure to keep books may result in gross negligence penalties
• capital property documentation must be preserved long-term

Knowing how long to keep your tax records prevents these risks.

Why CRA and Revenu Québec Demand Strict Recordkeeping

Tax agencies enforce record retention because:

• records support audit accuracy
• missing receipts lead to denied deductions
• GST/QST compliance requires invoice-level proof
• payroll errors arise without documentation
• real estate audits rely heavily on long-term records
• CRA uses digital matching tools to uncover discrepancies

Understanding how long to keep your tax records ensures you remain audit-ready and compliant.

Mackisen Strategy

Mackisen CPA provides complete recordkeeping and audit-readiness solutions:

• designing digital filing systems
• organizing receipts and bank records
• preparing audit-ready folders for GST/QST, payroll and income tax
• advising on data storage, backups and retention rules
• reconstructing missing records during audits
• ensuring long-term storage for capital property, losses and investments
• preparing compliance checkups to ensure CRA and ARQ readiness

Our structured approach keeps clients protected and documentation airtight.

Real Client Experience

Examples of how Mackisen supported clients through recordkeeping issues:

• A contractor lost receipts during a move. CRA denied expenses. We reconstructed records using bank data and preserved most deductions.
• A Québec landlord threw out renovation receipts after selling a rental. ARQ reassessed capital gains. Mackisen appealed and reduced the assessment.
• A business used paper-only records destroyed in a flood. We rebuilt income and expense records using supplier invoices and POS reports.
• A freelancer kept no mileage logs. CRA denied vehicle expenses. We reconstructed a defensible log to reduce adjustments.

These examples show why knowing how long to keep your tax records is essential.

Common Questions

• Does CRA accept digital receipts?
Yes—if readable and stored securely.

• Can I throw out receipts after six years?
Yes—unless they relate to assets or transactions still open.

• How long should I keep corporate records?
Minute books and share records must be kept permanently.

• Do GST/HST invoices need special retention?
Yes—ITCs can be denied without proper invoices.

• How long should I keep real estate records?
Until the property is sold + six years.

• What if I lose records?
They must be reconstructed.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps taxpayers stay compliant while protecting their deductions, credits and tax positions. Whether organizing personal, business or real estate records, our expert team ensures precision, structure and audit defense. When advising on how long to keep your tax records, Mackisen provides full recordkeeping systems, digital filing strategies and audit-ready documentation support.