How long should I hang onto my old tax returns?
Contrary to the stuff of nightmares, there’s only so far the Canada Revenue Agency (CRA) can dig into your tax history – six years to be exact. This is the length of time you’re legally required to hold onto old tax returns and supporting documents.
The six-year period starts at the end of the tax year to which the records relate. For example, a 2021 return and its supporting documents are safe to destroy at the end of 2027.
If for whatever reason, you wish to destroy your tax records before the six year period is up – say you’re moving to Fiji and want to travel light – you’ll have to get written permission from the CRA first.
What do income tax records include?
Even if you weren’t required to attach information slips, receipts, and expenses at the time you filed or e-filed, they’re an essential part of your tax record. In addition to your tax returns, here’s a laundry list of the supporting documents you’ll need to produce if the CRA comes calling. Be sure to hang onto every scrap that applies.
Why do I need to keep my income tax records?
You need to hang on to your old tax records for the simple reason that the CRA may want to review them.
If this is the case, they’ll send a request for information that asks you for your supporting documents. What happens next is simple, and not scary. All the CRA will do is cross-reference these docs with the information you provided on your tax return. Think of it as a spot check to ensure your reporting is accurate.
If, in the highly unlikely event the CRA wants to audit you, your old tax records will also play a starring role. And again, having them all in one place will make the process so much smoother and less stressful.
Can I get rid of my income tax records after six years?
If you’re certain you don’t need your records for anything else after the six year period has passed, by all means, get rid of them — but do it carefully. Resist the temptation to toss everything in the recycling bin and be on your merry way. Your records contain a lot of personal data that identity thieves would love to get their hands on such as your SIN and employment information.
To properly dispose of paper tax records, shredding is probably your best bet. If you file electronically and decide to keep digital copies of your tax records, be sure your computer is password protected.
After all, having your personal information compromised is way more stressful and inconvenient than being asked to hang onto your old tax records.
Businessgovnl
If you have a business in the Netherlands, you are legally obliged to keep business records and retain them for at least 7 years. Find out more. Do you have a business in the Netherlands? You are legally obliged to keep records and to retain them. All data on your business that you record on paper or digitally are part of your business records. The obligation to keep these records also applies when your business ceases trading within the specified period. Your
business records (in Dutch) form
the basis for your tax returns. Some documents are mandatory, such as: You must keep your business
records for at least 7 years. This is the retention period. You must keep data related to immovable property for at least 10 years. You must also keep your records for 10 years if you make use of the
Union scheme, housed in the One Stop Shop (in Dutch). Arrangements made with the Tax and Customs Administration to keep records for a
shorter period than 7 years, do not apply to other governmental institutions. Please note that if you stop running your company, you are still required to keep your basic records for the set length of time.Obligation to keep records
How long to keep records
If you want to digitise your records and use this as sufficient proof of your business activities, contact your local Tax Office (in Dutch).
Keeping programmes and files
If you only keep a printed copy of your digital files, you do not comply with the retention requirement. For computer programmes and files, the retention period also applies. You must make sure your digital files are accessible and in working order upon inspection. This also applies to the associated programmes.
Customer identification
You may ask your customers for identification, but you may not copy their personal data and keep it in your administration. You may only do so if it is compulsory, such as when you recruit personnel. The Dutch Data Protection Authority (Autoriteit Persoonsgegevens) can provide you with more specific information.
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