Under the Income Tax Act, all businesses are required to keep all records and documents that are necessary to establish their tax liability. This includes sales receipts, invoices from suppliers, proof of payment, and banking records.
As a business owner, you are required to keep these documents for a period of six years after the end of the tax year to which they apply. For example, if your tax year ends on Dec. 31, 2016, you will need to retain your records until January 2023. When purchasing capital goods, you must keep the documents showing your cost of acquisition until six years after you have disposed of the goods.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.