Taxes aren’t the most exciting topic – we know! It is still necessary to pay them if you work and live in Canada. After the end of your tax year in Canada, you must keep your Canadian tax records for some time. This includes people on working holidays in Canada who move home when their visas expire.
Our guide will explain why you need to keep your tax records in Canada, as well as how you can be sure to keep them for the proper length of time. Ready?
How Long Do You Need To Keep Tax Records in Canada
You must maintain records of Canadian taxation for six years. It is your responsibility to maintain your records dating back to the end of the last tax year for which you filed a Canadian tax return. In general, you must keep tax records through the end of the 2027 tax year if you file a tax return for the 2021 tax year. Tax season in Canada begins each year on 1 January and ends on 31 December. Whether or not you used them for your Canadian tax return, you must keep all supporting documents.
What are Canadian Tax Records?
A Canadian tax record includes a copy of your Canadian tax return, the related assessment notice, and any notice of reassessment. Your Canadian tax return will also include any supporting documents. Some examples:
- Tax receipts for expenses such as medical care and moving expenses, as well as for any other deductions or credits you claimed.
Why Do You Have To Keep Your Canadian Tax Records For Six Years?
The Canadian Revenue Agency (CRA) may want to examine your Canadian tax return within this timeframe, so you must keep your Canadian tax records for six years. It will be possible for you to prove your statements to the CRA by keeping your tax records. Some people, however, may need to keep their Canadian tax records for a different period, depending on their circumstances.
You Want To Dispose of Your Canadian Tax Records, But The Six-Year Timeframe is Not complete. What Do You Do?
You must seek permission from the CRA before destroying your tax records before the retention period ends. Without the permission of the CRA, you should not dispose of your tax records. CRA may prosecute your tax records if you destroy them without permission. Requesting permission to delete your tax records can be accomplished in two ways:
- Complete Form T137 and send it to the Tax Services office.
- Tax Services can be contacted by writing.
The CRA will inform you of the period in question by mail or in person if it requires you to keep your tax records longer than six years.
Who Can Help You With Canadian Tax?
Contact our advisory services to learn more about Canadian taxes and tax records and how to file your Canadian tax return.
Have you heard that you could be eligible for a tax refund if you have worked in Canada? The average Canadian tax refund is $998; we can apply on your behalf. Overpaying taxes in Canada is a yearly occurrence for thousands of employees, including working holidaymakers. Don’t keep your hard-earned cash behind you.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.