How long do you need to keep your business receipts and records in Canada? The short answer is six years — but the full picture is more nuanced. The CRA has specific rules about when the clock starts, what exceptions apply, and when you need permission to destroy records. Getting this wrong can result in penalties and denied deductions.
This guide covers the CRA’s record retention requirements under Information Circular IC78-10R5, including exceptions for different types of records and practical tips for long-term storage.
The Six-Year Rule
Under the Income Tax Act, you must keep all books and records for at least six years from the end of the last tax year they relate to. For example:
- Receipts from the 2026 tax year must be kept until at least December 31, 2032
- Receipts from the 2025 tax year must be kept until at least December 31, 2031
This applies to all business records: receipts, invoices, bank statements, contracts, payroll records, GST/HST returns, and any documentation that supports entries on your tax return.
Exceptions That Extend the Period
Several situations require you to keep records beyond six years:
| Situation | Retention Period |
|---|---|
| Objection or appeal filed | Until the matter is fully resolved plus six years |
| Loss carryforward | Six years after the year the loss is fully applied |
| Capital property (equipment, vehicles, real estate) | Six years after the year you dispose of the property |
| Corporations | Two years after the date of dissolution |
| Trusts | Two years after the last distribution |
If you carry forward a business loss from 2026 and apply it against income in 2030, you must keep the 2026 records until at least the end of 2036.
Getting Permission to Destroy Records Early
You cannot destroy business records within the six-year period without written permission from the CRA. To request early destruction, complete and submit Form T137 (Request for Destruction of Records) to your local tax services office. The CRA will review your tax history before granting or denying the request.
After the six-year retention period has passed, you do not need CRA permission to destroy the records — unless one of the exceptions above applies.
Digital Record Retention
Under Information Circular IC05-1R1, the CRA accepts electronically stored records as long as they meet specific requirements:
- Records must be readable and accessible throughout the retention period
- You need a reliable backup system to prevent data loss
- Records should be stored in Canada (or accessible from Canada with written CRA permission)
- The system must maintain the integrity of the original records
This means you can scan paper receipts and store them digitally, as long as the scans are legible and properly backed up. This is particularly important for thermal paper receipts (from restaurants, gas stations, and retailers) that fade within 1-2 years — well before the six-year requirement ends.
SparkReceipt provides secure cloud storage for all your receipts and documents for 10+ years, with automatic backup and instant accessibility. This exceeds the CRA’s six-year requirement and ensures your records are always audit-ready. Scan receipts with the AI receipt scanner and they are stored, searchable, and exportable for as long as you need them.
What Records to Keep
The CRA expects you to retain:
- All sales invoices and receipts
- Purchase receipts and expense documentation
- Bank statements and cancelled cheques
- Credit card statements
- Contracts and agreements
- Payroll records and T4/T4A slips
- GST/HST returns and ITC documentation
- Vehicle log books
- Home office calculations
- Capital property records (purchase and disposal)
For details on what makes a receipt valid in the CRA’s eyes, see our complete guide to CRA receipt requirements.
Record Retention FAQ
Can I throw away paper receipts after scanning them?
Yes, as long as your digital scans are legible, complete, and stored with proper backup. The CRA accepts digital images under IC05-1R1.
What if I lose records before the six-year period ends?
Try to reconstruct your records using bank statements, vendor duplicates, and email receipts. If the CRA audits you and you cannot produce documentation, deductions may be denied and penalties may apply.
Do personal tax records follow the same rules?
Yes. The six-year retention period applies to all records that support your T1 tax return, including employment income, investment records, and personal deductions like medical expenses and charitable donations.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified Canadian tax professional for your specific situation.
