2016-12-09 00:00:00 Finance and Accounting English Learn why Canadian business owners should keep receipts and other records for at least six years to comply with tax law. https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/03/08214652/Business-Records-For-The-Last-Six-Years-Filed-In-Boxes-On-A-Shelf.jpg Accounting Tip: Follow the Six Year Rule for Preserving Business Records

Accounting Tip: Follow the Six Year Rule for Preserving Business Records

0 min read

Under Canadian tax law, taxpayers are required to keep their books and records for a period of six years following the end of the tax year to which they relate. For individuals, this means the calendar year and for corporations the end of their chosen fiscal year.

The expression “books and records” means all documents, in any format, that are useful in establishing a taxpayer’s revenue, expenses, and taxes payable. They must be kept in Canada at your principal place of business.

There are exceptions to the six-year rule. For example, if you purchased a capital good, you must keep the documents showing the cost of acquisition until six years after the year when it is disposed of.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

How Cloud Software Can Help Your Accounting Practice

Use cloud accounting software to help your accounting firm and your clients…

Read more

Should You Use Online Accounting Software for Your Online Business?

If you own or manage a small business, it’s crucial to track…

Read more

How to Keep Your Small Business Cloud Accounting Even More Secure

Although cloud accounting software is one of the safest ways to store…

Read more