How Long to Keep Receipts in Canada: CRA Record Retention Rules
Written by Sampsa VainioIn Canada, businesses must maintain documentation for at least six years from the end of the last tax year they relate to. This foundational requirement applies across all business records including receipts, invoices, bank statements, and supporting tax documentation.
The Six-Year Rule
The Income Tax Act establishes a baseline retention period. For example, 2026 tax year receipts must be retained through December 31, 2032, while 2025 materials extend to December 31, 2031.
This timeframe covers:
- Sales invoices and receipts
- Purchase documentation
- Bank statements and cancelled cheques
- Credit card statements
- Contracts and agreements
- Payroll records and T4/T4A slips
- GST/HST returns and input tax credit documentation
- Vehicle logbooks
- Home office calculations
- Capital property records
Exceptions That Extend the Period
Several circumstances require extended retention:
| Situation | Retention Period |
|---|---|
| Objection or appeal filed | Until fully resolved plus six years |
| Loss carryforward | Six years after the year the loss is fully applied |
| Capital property disposal | Six years after the year of disposition |
| Corporation dissolution | Two years after date of dissolution |
| Trust distributions | Two years after final distribution |
For example, if you carry forward a business loss from 2026 and apply it against income in 2030, you must keep the 2026 records until at least the end of 2036.
Getting Permission to Destroy Records Early
Destruction during the six-year window requires written CRA authorization via Form T137 (Request for Destruction of Records). Once the retention period expires and no exceptions apply, destruction approval becomes unnecessary.
Digital Record Retention
Under Information Circular IC05-1R1, electronic storage meets CRA standards when records are:
- Readable and accessible throughout retention
- Protected by reliable backup systems
- Stored in Canada (or accessible with written permission)
- Maintaining integrity of originals
This permits scanning physical receipts for long-term digital storage, which proves especially valuable for thermal paper receipts that fade within 1-2 years -- well before the six-year deadline.
Record Retention FAQ
Can I throw away paper receipts after scanning them?
Yes, provided digital scans remain legible, complete, and properly backed up per IC05-1R1 standards.
What if I lose records before the six-year period ends?
Reconstruction using bank statements, vendor copies, and email receipts is advisable. Audit scenarios without documentation may result in denied deductions and applicable penalties.
Do personal tax records follow the same rules?
The six-year retention requirement applies to all records supporting T1 returns, encompassing employment income, investment documentation, and personal deductions including medical expenses and charitable contributions.