How to keep records
You are responsible for keeping records if you are carrying on a business or engaged in a commercial activity in Canada.
Requirements
Your records whether in paper or electronic format, have to:
a) be reliable and complete;
b) provide you with the correct information you need to assist in fulfilling your tax obligations and to calculate your entitlements;
c) be supported by source documents to verify the information contained in the records;
d) and include other documents, such as appointment books, logbooks, income tax and goods and services tax/harmonized sales tax (GST/HST) returns, scientific research and experimental development (SR&ED) vouchers and records, and certain accountants' working papers, that assist in determining your obligations and entitlements.
* Note: Persons carrying on more than one business must keep separate records for each business.
Retention and destruction
You have to keep all of the records and supporting documents that are required to determine your tax obligations and entitlements for a period of six years.
This six-year period starts at the end of the tax year to which the records relate. The tax year is the fiscal period for corporations and the calendar year for all other taxpayers.
Records and supporting documents concerning long-term acquisitions and disposal of property, the share registry, and other historical information that would have an impact upon sale or liquidation or wind-up of the business must be kept indefinitely.
Location of records
Your records must be kept at your place of business or at your residence in Canada, unless CRAgive you permission to maintain them elsewhere. To request permission, write to your tax services office.
* Note: CRA may require you to keep records for an additional period of time. If this is the case, you will receive details by registered letter or by a demand served personally by one of their representatives.
For more info - visit CRA's Website
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