Under the Income Tax Act, all businesses are required to keep all records and documents that are necessary to establish their tax liability. This includes sales receipts, invoices from suppliers, proof of payment, and banking records.
As a business owner, you are required to keep these documents for a period of six years after the end of the tax year to which they apply. For example, if your tax year ends on Dec. 31, 2016, you will need to retain your records until January 2023. When purchasing capital goods, you must keep the documents showing your cost of acquisition until six years after you have disposed of the goods.