# Old Tax Returns: How Long to Retain?



## TomF (Jul 26, 2011)

Here is a question I have never been clear about:

For an individual, Canadian citizen, living/working in Canada, paying Canadian taxes:
How long do old tax returns have to be kept?
I seem to recall it was seven years, but am not sure now.
And when does that seven years start/end?


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## CanadianCapitalist (Mar 31, 2009)

TomF said:


> Here is a question I have never been clear about:
> 
> For an individual, Canadian citizen, living/working in Canada, paying Canadian taxes:
> How long do old tax returns have to be kept?
> ...


Six years according to this CRA page. It seems to me that the clock starts at the moment you file the return.

http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-06-12e.html#P355_31841


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## NorthKC (Apr 1, 2013)

It is 6 years from last filing date as per CRA but in my business, we have seen someone get nailed on the 7th year so we always recommend 7 years to be on the safe side.


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## jamesbe (May 8, 2010)

This thread reminds me, I can throw out a lot of old junk! Thanks.


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## TomF (Jul 26, 2011)

CanadianCapitalist said:


> Six years according to this CRA page. It seems to me that the clock starts at the moment you file the return.
> 
> http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-06-12e.html#P355_31841


Thanks for the information, "CanadianCapitalist".

I am going to post some additional information because other people may come to this thread and find it a useful resource.
(If my information or worked example is incorrect, somebody please correct me so I can edit it.)

- - -

Here is another link I found:

RCC4409 - Keeping Records

According to the Canada Revenue Agency (CRA) website, 



> As a general rule, you must keep all of the records and supporting documents that are required to determine your tax obligations and entitlements for a period of six years from the end of the last tax year to which they relate.


In other words, the day after your tax documents see their sixth birthday, they no longer have to be kept for legal purposes.

So, for example, on January 1, 2013, all tax documents for the year 2006 and earlier (i.e. - 2006, 2005, 2004, 2003, etc.) can be shredded.


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## CanadianCapitalist (Mar 31, 2009)

TomF said:


> In other words, the day after your tax documents see their sixth birthday, they no longer have to be kept for legal purposes.
> 
> So, for example, on January 1, 2013, all tax documents for the year 2006 and earlier (i.e. - 2006, 2005, 2004, 2003, etc.) can be shredded.


D'oh. That's much clearer, thanks.


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## AltaRed (Jun 8, 2009)

TomF said:


> So, for example, on January 1, 2013, all tax documents for the year 2006 and earlier (i.e. - 2006, 2005, 2004, 2003, etc.) can be shredded.


Except NEVER destroy asset purchase and sell information, including documentation of re-invested distributions, as that is the only proof one would have to calculate ACB properly and thus cap gains/losses when selling an investment. For those with brokerage (or bank asset management) accounts, the Annual Trading Summary will do though many people also, or instead, keep their 'trade confirmation' slips. As discussed in other threads, it also pays to keep T3 slips and/or brokerage Statements of Income and Expenses for Box 42 Return of Capital information.


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## dogleg (Feb 5, 2010)

Very good advice Alta. Where CRA is concerned being a packrat is a good idea. A while back I had a dispute over some of my corporate deductions. I used some old records and went before the CRA 'fairness committee' to prevail-- kind of an oxymoron don't you think?


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## leoc2 (Dec 28, 2010)

This is where a document scanner comes in handy!


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## Eclectic12 (Oct 20, 2010)

leoc2 said:


> This is where a document scanner comes in handy!


And if you install a "print to PDF" utility on your computer, you can also easily keep PDF copies of the source company's distribution info, from the investor section.

If one has the option to signup with the brokerage for electronic copies - the T3's could also be PDFs.


Just make sure to backup the electronic copies as well.


Cheers


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## fraser (May 15, 2010)

Keep in mind that if you refile, make changes to previous years the clock starts all over again.

In 2006 we refiled back as far as 1999. We had to keep all the records from 1999. We now have a big box marked shred in 2013.


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## Robillard (Apr 11, 2009)

The CRA can audit and reassess on transfer pricing issues (the pricing of cross-border related party transactions) up to 7 years after the date of the original notice of assessment. This is not significant for individual taxpayers, but if you own or manage a business that has these kinds of transactions, you should be cognizant of the statute of limitations. 

Of course, it goes without saying, if you have a tax dispute with the CRA, don't destroy your records.

Glaxosmithkline got in a tax dispute on transfer pricing issues with the CRA for its 1990-1993 taxation years. The Tax Court of Canada considered the case and rendered a decision in 2008. The Federal Court of Appeals ruled on it in 2010. And the Supreme Court gave a partial ruling on it in 2012, sending other issues back to the Tax Court to be reconsidered. The wheels of justice can turn quite slowly.


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## newfoundlander61 (Feb 6, 2011)

Make sure to shred the old junk.


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## fraser (May 15, 2010)

We shred everything. Fortunately, in Alberta the Auto Club puts on an annual shredding day. You just drive up, flip open your trunk, and the attendants take the box or boxes out of your trunk and toss them in the mobile shredder. 
Great service for some of the items that we don't shred immediately.


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