📄 Record Retention Calculator

How long does the CRA require businesses to keep tax records?

The Canada Revenue Agency requires businesses to keep most tax records for 6 years from the end of the tax year to which they relate. This applies to corporations, sole proprietorships, and partnerships operating in Ontario, Toronto, Mississauga, and across Canada. However, certain documents like incorporation papers and property records must be kept permanently. Insight Accounting CPA helps Mississauga businesses implement compliant record retention policies.

What happens if I throw away records too early?

Disposing of records before the required retention period can result in CRA penalties if you're audited and cannot produce the documents. The CRA can assess penalties, reassess your taxes, and in serious cases, charge interest on unpaid amounts. For businesses in the GTA, maintaining proper records is essential for audit defense. Insight Accounting CPA Professional Corporation provides record retention consulting to Toronto and Mississauga businesses to ensure compliance.

Can I keep digital copies instead of paper records?

Yes, the CRA accepts electronic records as long as they are readable, complete, and accessible throughout the retention period. You must be able to provide them in a readable format if requested during an audit. Many Ontario businesses use cloud-based accounting systems like QuickBooks Online or Xero. Insight Accounting CPA helps GTA businesses implement secure digital record-keeping systems that meet CRA imaging and electronic record requirements.

Do I need to keep payroll records longer than 6 years?

While CRA requires 6 years for most payroll tax records (T4, T4A, ROEs), Ontario employment law requires you to keep certain employee records for 3 years after termination. This includes records of hours worked, wages paid, and vacation entitlements. For long-term employees, this can extend well beyond 6 years. Businesses in Mississauga, Toronto, and across Ontario must comply with both federal and provincial requirements. Insight Accounting CPA advises on dual compliance for payroll retention.

What records should I keep permanently?

Certain documents should be kept indefinitely: incorporation documents (Articles of Incorporation, bylaws), property purchase records (to calculate capital gains when sold), trust documents, and shareholder agreements. Keeping these records protects your business during ownership changes, property sales, and estate planning. Insight Accounting CPA in Mississauga helps Ontario business owners organize permanent records in secure, accessible formats for long-term compliance and tax planning.