RECORD KEEPING

Taxpayers must keep records that support every amount on their return. Records do not need to be sent with an electronic return, but the CRA can ask for them at any time during a review or audit.

HOW LONG TO KEEP RECORDS

• At least six years from the end of the tax year they relate to.

• For returns filed late, six years from the date the return was filed.

• Longer for records related to long-term assets (such as purchase documents for property and investments), which should be kept until six years after the asset is sold, since they establish cost.

• Records relevant to an objection or appeal must be kept until the matter is resolved.

• Records may be destroyed earlier only with written permission from the CRA.

WHAT TO KEEP

• All slips (T4, T5, T3, T5008 and others) and receipts for deductions and credits.

• RRSP, FHSA and donation receipts; medical and child care receipts.

• Signed Form T2200 for employment expenses, vehicle logbooks and home office calculations.

• Records of the adjusted cost base of investments, including reinvested distributions and return of capital.

• Purchase and sale documents for real estate and records of capital improvements.

• Business records: sales invoices, expense receipts, bank statements, and a ledger.

• Copies of returns, Notices of Assessment and correspondence with the CRA.

ELECTRONIC RECORDS

Records may be kept electronically, including scanned images of paper receipts, if they are legible, complete and retrievable. Electronic records must be kept in an electronically readable format even if paper copies also exist.

VEHICLE LOGBOOK

A full-year logbook records the date, destination, purpose and kilometres of each business trip. After one full base year, a three-month sample logbook can be used in later years if usage stays within 10 percentage points of the base year.