# How Long to Keep Business Records (Canada)

**URL:** https://community.mycartracks.com/t/how-long-to-keep-business-records-canada/407
**Category:** Expenses & Receipts
**Tags:** recordkeeping, receipts, business-records, canada, cra
**Created:** 2026-05-15T10:44:09Z
**Posts:** 1

## Post 1 by @MyCarTracks_support — 2026-05-15T10:44:10Z

If you are asking how long to keep business records in Canada, most Canadian small businesses should keep required records and supporting documents for six years from the end of the last tax year they relate to. The Canada Revenue Agency (CRA), the federal tax agency, says in its [business recordkeeping guidance](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc188/keeping-records.html) that records apply to income tax, GST/HST, the sales tax many Canadian businesses collect from customers and send to the government, payroll, and other CRA-administered obligations, so your file should support more than the annual income tax return.

For individuals and sole proprietors, the tax year is usually the calendar year. For corporations, the tax year is the fiscal period. If you file late, close a non-incorporated business, dissolve a corporation, file an objection or appeal, keep records outside Canada, or want to destroy records early, the timing can change.

This article is educational and is not tax, legal, accounting, payroll, GST/HST, Quebec sales tax (QST), or provincial tax advice. Record rules can change by business structure, province or territory, GST/HST or QST status, payroll status, industry, and the type of document. Ask your accountant before destroying records you may still need.

## Quick answer

Keep your business records for at least six years from the end of the last tax year they support. Keep them at your Canadian residence or place of business unless you have written CRA permission to keep them somewhere else. If you want to destroy records before the retention period ends, request written permission first.

Your record file should show what you earned, what you spent, why the transaction belonged to the business, which tax period it belongs to, and where the source document is stored. For vehicle expenses, keep the kilometre log, odometer readings, receipts, and vehicle-by-vehicle records with the same tax-year file.

## How long to keep business records in Canada

The general CRA rule is six years from the end of the last tax year the records relate to. That “last tax year” wording matters because a record may support more than one filing period, more than one GST/HST return, or a later calculation.

| Situation | How long to keep the records |
| --- | --- |
| Ordinary business records and supporting documents | Six years from the end of the last tax year they relate to |
| Late-filed income tax return | Six years from the date you file the return |
| Objection or appeal | Until the latest relevant date: the matter is resolved, the period for any further appeal has passed, or the six-year period has passed |
| Closed non-incorporated business | Six years from the end of the tax year in which the business ended |
| Dissolved corporation | Generally two years after the date of dissolution for records and supporting documents |
| Long-term property, share registry, sale, liquidation, or wind-up records | Keep indefinitely when the records affect a sale, liquidation, or wind-up |
| CRA asks for a longer period | Keep the records for the longer period stated by the CRA |

The CRA’s detailed page on [where and how long to keep records](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/where-keep-your-records-long-request-permission-destroy-them-early.html) lists these special cases. If you are unsure which row fits your business, keep the record and get advice before deleting anything.

## Why business records matter

Good records do more than satisfy a filing requirement. They help you separate business and personal activity, claim supported business expenses, answer GST/HST questions, prepare payroll and source deduction records, and respond if the CRA asks to review your books.

Use records to support:

- income from invoices, platforms, payment processors, cash, and bank deposits
- business expenses, receipts, invoices, paid bills, statements, and proof of payment
- GST/HST collected, GST/HST paid, and possible input tax credits
- payroll deductions, source deductions, payroll remittances, and employee records
- capital assets, capital cost allowance (CCA) support, purchase dates, sale dates, and long-term property history
- business-use-of-home expenses and mixed-use allocations
- motor vehicle expenses, total kilometres, business kilometres, odometer readings, and trip purpose

If your business is registered for GST/HST, the record has to do more than show that a payment happened. The CRA’s [input tax credit guidance](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/calculate-prepare-report/input-tax-credit.html) requires sufficient documentary evidence before you claim input tax credits (ITCs), with invoice details such as supplier name, invoice date, amount paid, GST/HST charged, registration number, buyer name, description, and payment terms depending on the size and type of purchase.

## Where to keep your records

Keep your records at your place of business or residence in Canada unless the CRA gives written permission to keep them somewhere else. Records stored outside Canada and accessed electronically from Canada are not treated as records kept in Canada.

If you want to keep records elsewhere, write to your tax services office and wait for written permission. If permission is granted, the records still need to be available in Canada for CRA review when requested.

You are still responsible for adequate records when a bookkeeper, accountant, internet transaction manager, app, or cloud provider stores them for you. A third-party system can make the file easier to manage, but it does not transfer your recordkeeping responsibility.

## Acceptable formats for storing records

CRA accepts paper and electronic records when they are readable, accessible, reliable, and detailed enough to support the return, remittance, claim, rebate, or calculation. The file can include ledgers, journals, financial statements, tax returns, correspondence, charts, tables, invoices, receipts, contracts, bank statements, payroll records, and computerized accounting records.

For an ordinary expense receipt, save enough detail to explain the purchase later:

- supplier or seller name
- date of purchase or invoice date
- amount paid or payable
- description of goods or services
- GST/HST, QST, or other tax details where relevant
- payment method or proof of payment
- business purpose or category

Do not rely on a bank feed alone. A card statement may show that you paid a store, but it may not show what you bought, whether the purchase was partly personal, or whether the GST/HST support is strong enough for an ITC claim.

## Paper and electronic records

Choose a storage method you can keep current. Paper files can work for a very small business, but they need to be protected from loss, fading, water damage, theft, and misfiling. Electronic files are easier to search, copy, and share with an accountant, but they still have to stay readable and available for the full retention period.

The CRA’s [electronic recordkeeping guidance](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/ic05-1/electronic-record-keeping.html) covers business systems such as accounting software, point-of-sale systems, internet-based systems, electronic purchasing systems, and tax return software. If records are created and kept electronically, retain the electronic records themselves. A printout is not a complete substitute for the electronic record if the system data is what supports the filing position.

When you scan paper receipts, keep the image clear and complete. The scan should show the same useful details as the original, including the vendor, date, amount, tax, and description. If the original receipt is still your best source document, keep it until you are comfortable that the electronic version is reliable and accepted for your record system.

## Organizing business records during the year

A simple record system beats a cleanup project at tax time. Build folders around the way your business actually reviews its books: tax year, month, account, vendor, project, vehicle, employee, or GST/HST reporting period.

Use a routine like this:

1. Separate business bank and card transactions from personal transactions.
2. Save each invoice, receipt, statement, contract, payroll record, and tax filing confirmation.
3. Name files with the date, vendor, amount, and category.
4. Attach the source document to the accounting entry when possible.
5. Add a business-purpose note for mixed-use, travel, meal, vehicle, or unusual expenses.
6. Reconcile bank and card statements monthly.
7. Export or save GST/HST, payroll, and income tax confirmations with the same period’s records.
8. Back up electronic records and test that the backup can be opened.

For paper files, group records by year and category, then store them somewhere dry, locked, and easy to retrieve. For electronic files, use folders and file names that an accountant or CRA reviewer could understand without asking you to remember the transaction.

## Vehicle and kilometre records

If your business uses a vehicle, keep the vehicle file with the broader business records. CRA’s [motor vehicle records guidance](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses/motor-vehicle-records.html) treats a full logbook as the best evidence for business use and expects date, destination, purpose, and kilometres for each business trip.

For each vehicle, keep:

- total kilometres for the year or fiscal period
- business kilometres for the year or fiscal period
- odometer readings at the start and end of the year or fiscal period
- trip date, destination, purpose, and kilometres
- receipts and invoices for vehicle expenses
- dates and odometer readings when you buy, sell, trade, or change vehicles

If you use a simplified logbook after a full base year, keep that base-year logbook for six years from the end of the last tax year that relies on it. For deeper vehicle record detail, use [CRA Mileage Log Requirements (Canada)](https://community.mycartracks.com/t/cra-mileage-log-requirements-canada/354) and [Claim Motor Vehicle Expenses From the CRA (Canada)](https://community.mycartracks.com/t/claim-motor-vehicle-expenses-from-the-cra-canada/352).

## When to destroy business records

You can usually destroy records after the required retention period has passed, but do a final check first. Some records support more than one tax year, a future sale, a GST/HST reporting period, an unresolved objection, payroll review, or a business closure.

Before destroying records, confirm:

- the last tax year the record supports
- whether the return was filed late
- whether an objection, appeal, review, audit, or reassessment is open
- whether the record supports a GST/HST, payroll, or corporation filing period
- whether the record relates to property, shares, sale, liquidation, or wind-up history
- whether another federal, provincial, territorial, municipal, lender, insurer, or contract rule requires a longer period

Shredding paper and deleting electronic files too early can make a later review harder and may create legal risk. If the record is cheap to keep and hard to recreate, keep it longer.

## Destroying records before the retention period ends

If you want to destroy books, records, or supporting documents before the retention period ends, get written CRA permission first. You can request permission with [Form T137, Request for Destruction of Records](https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t137.html), the CRA form for asking to destroy records early, or apply in writing to your tax services office.

The permission is not automatic. It applies only to records required under legislation the CRA administers, so it does not clear records you may need under other federal, provincial, territorial, municipal, employment, lender, insurance, or contract rules.

If records are destroyed by a disaster or accident, contact the CRA as soon as possible and document what happened, which records were lost, what backups exist, and how you reconstructed the file.

## MyCarTracks workflow

Use MyCarTracks for the vehicle-record part of the business file. [MyCarTracks automatic mileage tracking](https://www.mycartracks.com/products/automatic-mileage-tracking) can capture trips, help separate business and personal kilometres, keep vehicle records organized, and export reports for tax, reimbursement, payroll, or accountant review.

The app does not decide CRA treatment, GST/HST treatment, payroll treatment, or deductibility. It helps you keep the kilometre record ready so the tax or accounting decision starts from a cleaner file.

## FAQ

### How long should I keep business records in Canada?

Generally, keep required business records and supporting documents for six years from the end of the last tax year they relate to. Keep them longer when a special situation applies, such as a late-filed return, objection, appeal, closed business, dissolved corporation, long-term property record, or CRA request.

### Does the six-year rule start from the transaction date?

Not usually. The general CRA rule uses the end of the last tax year the record relates to. If a record supports a later tax year, GST/HST period, property sale, or simplified vehicle logbook calculation, the relevant date may be later than the original transaction date.

### Can I keep business records electronically?

Yes, if the electronic records are readable, accessible, reliable, and detailed enough to support your filing position. Keep the electronic source records when the records were created or maintained in an electronic business system.

### Can I keep Canadian business records in cloud storage outside Canada?

Only with care. CRA guidance says records kept outside Canada and accessed electronically from Canada are not considered records kept in Canada. Ask for written CRA permission before keeping required records outside Canada.

### What happens if my records are destroyed?

If records are destroyed by a disaster or accident, contact the CRA quickly, document the loss, and reconstruct the file from backups, bank records, invoices, suppliers, customers, accounting exports, and other source documents where possible.

### Do mileage tracking reports replace receipts?

No. A mileage tracking report can support trip details and business kilometres, but vehicle expense claims still need receipts, invoices, odometer support, and vehicle-by-vehicle records where relevant.

## What to read next

- [Small Business Tax Deductions (Canada)](https://community.mycartracks.com/t/small-business-tax-deductions-canada/406)
- [How to Record and Manage Prepaid Expenses (Canada)](https://community.mycartracks.com/t/how-to-record-and-manage-prepaid-expenses-canada/408)
- [GST/HST for Self-Employed People and Small Businesses (Canada)](https://community.mycartracks.com/t/gst-hst-for-self-employed-people-and-small-businesses-canada/411)
- [Tax Deadlines for Self-Employed People and Small Businesses (Canada)](https://community.mycartracks.com/t/tax-deadlines-for-self-employed-people-and-small-businesses-canada/409)
- [CRA Mileage Guide (Canada)](https://community.mycartracks.com/t/cra-mileage-guide-canada/349)
- [CRA Mileage Log Requirements (Canada)](https://community.mycartracks.com/t/cra-mileage-log-requirements-canada/354)
- [Claim Motor Vehicle Expenses From the CRA (Canada)](https://community.mycartracks.com/t/claim-motor-vehicle-expenses-from-the-cra-canada/352)
- [Self-Employed Vehicle Expense Deductions (Canada)](https://community.mycartracks.com/t/self-employed-vehicle-expense-deductions-canada/353)

## Sources

- [CRA Keeping Records](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc188/keeping-records.html)
- [CRA where and how long to keep records](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/where-keep-your-records-long-request-permission-destroy-them-early.html)
- [CRA electronic record keeping](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/ic05-1/electronic-record-keeping.html)
- [CRA Form T137: Request for Destruction of Records](https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t137.html)
- [CRA input tax credits](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/calculate-prepare-report/input-tax-credit.html)
- [CRA motor vehicle records](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses/motor-vehicle-records.html)