Keeping Records

Use this guide if you are:

• a person carrying on a business;
• a person who is required to pay or collect taxes or other amounts such as payroll deductions and the goods and services tax/harmonized sales tax (GST/HST);
• a person who makes an application for a GST/HST rebate or refund;
• a trust;
• a municipal corporation;
• a university;
• a college;
• a non-profit organization;
• a hospital;
• a school authority;
• a registered charity;
• a registered Canadian amateur athletic association;
• a payroll services provider; or
• a third party record keeper.

Why should you keep complete and organized records?

You are required by law. You are required to keep complete and organized records as stated in the:

• Income Tax Act (ITA);
• Excise Tax Act (ETA);
• Canada Pension Plan (CPP);
• Employment Insurance Act (EIA); and
• Air Travellers Security Charge Act (ATSCA).

For further information see: www.cra.gc.ca/about/faq-e.html#taxact.

There are benefits for you

Complete and organized records will:

• help you identify the sources of your income;
• remind you of expenses you can deduct and tax credits you can claim;
• make it easier for you to determine your taxes owing;
• provide you with information on the past and present financial positions of your business or other organization;
• help you make good business decisions;
• assist you in getting loans from banks and other lenders;
• help to prevent problems if we audit your returns; and
• possibly help you in selling your business or bringing in new partners.

Consequences of not keeping adequate records

There are penalties if you:

• do not keep adequate records;
• do not provide CRA officials access to your records, when requested; or
• do not give information to CRA officials, when asked.

See Information Circular IC78-10, Books and Records Retention/Destruction, and GST/HST Memoranda Series 15.1, General Requirements for Books and Records, for more information on possible penalties and legal action.

 
Download the guide Keeping Records from the Canada Revenue Agency:

recordkeeping.pdf
(Acrobat [PDF] file, ~120K)