Let’s face it – no one likes tax season. It’s just another thing to add to your already-busy schedule when spring rolls around.
However, it’s not just filing taxes that gives some people a headache, it’s knowing what to do after the process is finished.
There is a lot of confusion surrounding the proper disposal of old tax records. Many people don’t know how long they should be kept, or even how to safely dispose of them.
Luckily, we’ll clear all of these things up for you in this post!
First, let’s take a quick look at how long they should be kept:
How Long Should You Keep Income Tax Records?
According to the CRA:
“Even if you do not have to attach certain supporting documents to your return, or if you are filing your return electronically, keep your supporting documents for six years in case the CRA selects your return for review. The CRA may ask for documents other than official receipts, such as canceled cheques or bank statements as proof of any deduction or credit you claimed. Also, keep a copy of your return, the related notice of assessment, and any notice of reassessment.”
Where Should You Keep Your Records?
The CRA states that you must keep all of your tax records at your place of residence or your place of business.
However, they do mention you may be allowed to keep them elsewhere as long as you have expressed written permission from the CRA itself.
That said, there are a few subjects in which the CRA will not provide permission to store their tax documents elsewhere. These include:
- Registered charities.
- Amatuer athletic associations.
- Canadian municipalities.
- Public governmental bodies.
- Housing corporations.
How To Destroy Old Tax Records
After the appropriate amount of time has passed, it’s a good idea to destroy your old tax documents.
This will help protect you or your company from crimes like identity theft or fraud. In general, it also provides you with some piece-of-mind, knowing that you don’t have any sensitive information lying around your office or home.
But what’s the best way to destroy your documents?
This depends on the type of medium they are held within. For example, if they’re paper documents, enlisting the help of a certified shredding company is your best bet.
They will have the experience and technology required to make sure that in no way will your documents be able to be pieced back together.
If your documents are stored electronically, you need to make sure all files are properly removed from whatever device they are held on and they cannot be recovered.
Looking for a Shredding Company in Edmonton?
Whether you need to get rid of your old tax documents or anything else, Western Archives has the experience and equipment to make the process go as smoothly as possible. Please contact us today to see how we can help.