How Long Should You Keep Canada Income Tax Receipts?

Keeping receipts for income tax claims

If you plan to claim any deduction or credit on your tax return, keep the receipt and supporting documents. Taxpayers carry the responsibility to substantiate claims, even when filing a nil return to receive refundable credits or when using electronic filing. Despite growing digitization, accurate receipts and records remain essential. As you get ready for the 2025 tax season, here’s a clear guide to what the Canada Revenue Agency (CRA) may expect if your return is reviewed.

Who files taxes in Canada

Canada’s tax system operates on residency and self-assessment. That means Canadian residents must report worldwide income in Canadian dollars, claim only the deductions and credits that apply to them, and pay any taxes owing to the CRA.

If you are an employee, you help this process by completing federal and provincial TD1 forms so your employer can withhold the correct income tax. Other taxpayers—such as self-employed individuals, investors, and retirees—may need to make instalment payments throughout the year.

You have the right to organize your affairs within the law’s purpose and intent. If you discover errors, you can usually correct returns voluntarily for up to 10 years for many provisions.

How long must you keep income tax records and receipts?

Generally, keep documentation, including receipts, for at least six years from the end of the tax year to which they relate. The CRA follows the calendar year for individuals and unincorporated businesses and the fiscal year for corporations.

There are exceptions. For example, when a business closes, retention rules change:

• Non-incorporated businesses must retain records for six years from the end of the tax year in which the business ceased operations.
• Corporations must keep records for two years after dissolution, unless the company is involved in a merger or amalgamation.

Sending documents and filing with the CRA

The CRA is moving toward a “digital first” communications approach, though paper submissions remain possible. As part of this effort, starting in spring 2025 the CRA plans to deliver most business correspondence electronically—via My Business Account or Represent a Client if you use an accountant.

Keep a current email address on file with the CRA so you receive notifications, but don’t send receipts or records by ordinary email—the CRA does not consider email secure for transmitting documents. Any documents you provide must be legible.

To streamline future requests and communications, set up one or more CRA portals: My Account (for individuals), My Business Account, and Represent a Client. These channels support secure submission and retrieval of documentation.

Set up a backup plan for your records

Disaster recovery matters. Keep both physical and digital copies of tax returns, receipts, records, and Notices of Assessment or Reassessment. Print important documents and store them securely so you can preserve appeal rights and respond quickly if audited.

Who gets audited?

Anyone can be audited. Returns that include discretionary or high-value deductions—such as childcare, moving expenses, medical costs, or self-employment expenses—are more likely to attract review. The CRA uses risk assessment to identify returns that may contain errors or non-compliance, and it compares similar profiles to flag anomalies.

The CRA also receives information from other audits, third parties, and tip submissions. The agency runs a leads program for suspected tax or benefit cheating, and it shares that information with auditors when appropriate.

What documents can an auditor request?

A CRA auditor may request a wide range of records: previously filed tax returns, credit reports, property ownership details, mortgage documents, bank and credit card statements, and other financial records.

The CRA can also request records from your spouse or common-law partner, family members, and related entities such as corporations, partnerships, and trusts. For rental properties or businesses, expect to provide ledgers, journals, invoices, receipts, contracts, rental agreements, and bank statements. Adjustments made by accountants or bookkeepers may also be scrutinized.

When claiming rental refunds, consult Form RC685 (Refund Examination Program – Rental Information) for a detailed list of the documents the CRA may require. Business owners should review Form RC683 (Refund Examination Program – Business Information) to see what evidence supports business deductions, capital asset purchases, customer lists, location details, and records related to family members or advisors involved in the business.

Get ready—collect your receipts

The CRA will begin accepting electronically filed returns for the 2025 tax year on February 24, 2025. Even with digital filing, accurate self-assessment and careful record-keeping remain essential. Failing to substantiate claims can lead to reassessments, penalties, and interest, as well as unnecessary stress.

Filing an audit-ready tax return can be time-consuming, but keeping clear, organized records ensures you can support your claims if the CRA asks for proof. Remember that the responsibility to substantiate deductions and credits rests with you.

Read more about income taxes:

• Tax credits, due dates and when you can file: Your income tax return guide
• Audit-proof your side hustle
• What to do if you haven’t filed an income tax return
• Renting out the cottage? Don’t miss these 11 tax-deductible expenses