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Many entrepreneurs wonder how long do you store business records? Keeping reliable, accurate and complete records about your business is essential. Save space by regularly eliminating older records according to the CRA rules.

How Long Do You Store Business Records?

According to the Canada Revenue Agency, you keep all records and supporting documents for six years from the end of your last tax year they relate to.

What Records Should You Keep?

Firstly, the CRA requires that you keep GST, income taxes, and source deductions documents. There are also business income and expenses records that need to be kept. Also, business property and motor vehicle use for the business along with your official log books. If you are audited, you will be asked to produce all of this information.

Can I Keep Electronic Records?

Secondly, electronic records and your software required to read them must be kept in an electronically readable format for the same retention period of those same six years.

What If I File My Corporate Return Late?

Thirdly, if you file your return late, your records and books must be kept for six years from the date your return is filed. Permanent records such as general ledgers, minutes of directors’ and shareholders’ meetings are part of this storage. You also need to keep contracts for a period of two years after a corporation is dissolved.

Is There Ever An Exception to the 6 Year Rule?

Finally, with written authorization from the tax services office, there may be exceptions. This authorization is required if your business records are to be disposed before the six-year minimum waiting period. The CRA may approve or deny the exception. It’s important to hold on to your records until you receive a formal reply. If your business records are destroyed before six years without permission, the CRA can charge you. This is a very stressful and costly mistake.

Call us today when looking for an accountant for your business. We want to organize your business records.

Padgett Business Services N.W.
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Tax Experts and Business Coach

How Long Do You store Business Records?
Posted On: 12/04/17 - 0