Books And Records: Document Retention Policies And Best Practices When Dealing With The CRA

The proper maintenance of a business' books and records is essential when dealing with an audit initiated by the Canada Revenue Agency (the "CRA"). Taxpayers should be cognisant of their recordkeeping obligations under the Income Tax Act (Canada) (the "Act") and regulations made pursuant to the Act (the "Regulations"), and this article aims to highlight certain document retention requirements outlined in the Act with which readers may not be intimately familiar.

Which documents must be retained?

A corporation is required by the Act and the Regulations to maintain the following documents from its date of incorporation until two years following the date of the corporation's dissolution: