There’s no way around it, a business’ tax records can take up an enormous amount of room. Also, you may want to destroy your old records for security or other purposes.
The Canada Revenue Agency has strict guidelines when it comes to keeping and destroying tax records. Their guidelines state:
“You must keep all of the records and supporting documents that are required to determine your tax obligations and entitlements for a period of six years from the end of the last tax year to which they relate.”
However, exceptions can be made. You can send in an application to receive written permission from the CRA to destroy records ahead of the 6-year time period.
“You may destroy your books of account and records at an earlier time than outlined above if you receive written permission from the CRA… If you destroy paper or electronic records without the express permission of the CRA, you may be subject to prosecution.”
You or an authorized representative can get permission by:
• Completing Form T137, Request for Destruction of Books and Records. Go to www.cra.gc.ca/forms to obtain a copy of Form T137, or • Applying in writing to your tax services office
If you have any questions about record keeping or any other part of tax accounting, please don’t hesitate to contact us in our Toronto office at 647-557-7591.