Tax Records in Canada 2025: In Canada, the general rule for retaining tax records, as per the Canada Revenue Agency (CRA), is 6 Years from the end of the tax year to which they relate. For the 2025 tax year (filed in 2026), this means keeping records until December 31, 2031.
Key Details Tax Records in Canada 2025
- Standard Retention:
- Individuals, businesses, and corporations must retain supporting documents (receipts, invoices, T4s, etc.) for 6 years after the tax year ends.
- Example: 2025 tax records should be kept until the end of 2031.
- Exceptions:
- Late-filed returns: The six-year period starts from the filing date.
- Objections/Appeals: Retain records until disputes or audits are resolved, even if this exceeds six years.
- Loss Carry-forwards: Keep records supporting losses until the loss is applied (e.g., a 2025 loss claimed in 2030 requires retaining those records until 2036).
- Dissolved Corporations: Records must be kept for two years post-dissolution.
- Special Cases:
- The CRA can reassess returns within 3 years of the initial assessment for most individuals, but in cases of fraud or misrepresentation, there is No Time Limit.
- Self-employed individuals and businesses follow the same six-year rule.
Recommendations Tax Records in Canada 2025
- Digital Backups: Store electronic copies securely to save physical space.
- Check Updates: Verify the CRA website for any changes to retention policies, though no updates are expected for 2025 as of now.
Always consult the CRA Guidelines for the most current information.
For more Informations, Stay in touch with Us:
