Supporting documents: what to keep and for how long?

In short, the basic rule can be summed up in one sentence: keep your accounting records and supporting documents for six years after the end of the last tax year to which they relate. This applies to both the CRA and the tax authorities and covers invoices, bank statements, VAT (5%) and QST (9.975%) documents, payroll records, and your T1/TP1 or T2/CO-17 returns. Some documents must be kept longer: a company's permanent records for up to two years after its dissolution, capital property documents for six years after the sale of the property, and an objection file until final settlement.

An expense without supporting documentation is an expense that the tax authorities can disallow. It's as simple as that: during an audit, the CRA or the IRS doesn't just look at your accounting records; they want to see the invoice, contract, or statement that supports them. Knowing what to keep, for how long, and in what format is therefore part of basic bookkeeping, just like recording transactions. This 2026 guide presents the CRA and IRS record retention schedule as a clear checklist, answers questions about format (paper or digital), and explains the role of your accountant should an audit occur. It complements our guide on the cost of bookkeeping in Quebec .

The six-year rule: how is it really calculated?

The federal Income Tax Act and the Quebec Tax Administration Act impose the same basic requirement: to keep your records and supporting documents for six years after the end of the last tax year to which they relate. The starting point is therefore not the invoice date, but the end of the tax year it documents.

• Concrete example. An invoice paid in March 2026 relates to your 2026 tax year: you keep it until the end of 2032. For a company whose financial year ends on June 30, the countdown starts from the end of that financial year, not the calendar year.
• Late filing of a return. If you file a return after the deadline, the six-year period begins from the date the return is sent, not from the year in question.
• Objection or appeal. If you dispute a contribution, keep all the documents in the file until the final settlement and the expiry of the appeal periods, even beyond six years.
• Year not declared. As long as a declaration has not been produced, the documents for this year must be kept: the counter does not start.

Also note that the standard reassessment period is shorter: generally, three years after the notice of assessment for an individual or a Canadian-controlled private corporation, and four years for other corporations. The six-year retention requirement gives the tax authorities the necessary time to verify their tax return, and this period becomes unlimited in the event of a false declaration. Therefore, keeping your documents is not an act of excessive caution; it is the bare minimum required by law.

The CRA and Revenu Québec retention table, in checklist

Here is the retention schedule that covers the vast majority of situations for a Quebec SME or self-employed worker. It applies to both jurisdictions: a single, well-executed filing fulfills your federal and Quebec obligations simultaneously.

To make this table second nature, organize your documents by tax year and category. Here is the checklist for the seven files to keep:

• Sales. Issued invoices, customer contracts, account statements, cash register tapes or reports from your billing system.
• Purchases and expenses. Supplier invoices, detailed receipts, expense reports with business purpose, vehicle mileage log.
• Bank. Bank and corporate credit card statements, deposit slips, bank reconciliations.
• Taxes. VAT returns produced and purchase invoices bearing the suppliers' registration numbers, the proof required for your ITCs and ITRs.
• Payroll. Payroll records, stubs, T4s and Relevé 1s, proof of DAS remittances to the CRA and Revenu Québec.
• Fixed assets. Purchase contracts for equipment, vehicles or buildings, invoices for improvements, sales documents: this is the basis for calculating depreciation and capital gains.
• Company. Minutes book, shareholders' register, shareholders' agreements, resolutions: the permanent registers, to be kept for up to two years after a possible dissolution.

Our 2026 tax season checklist lists the documents to gather each spring; the table above then tells you how long to keep them.

Paper or digital: what the CAF (Family Allowance Fund) and the tax authorities accept

Good news: both administrations accept electronic records. You can scan your paper invoices and work without a binder, provided three conditions are met. The images must be legible and complete, the files must remain understandable and accessible throughout the retention period, and you must be able to produce them upon request. Conversely, if your records are created electronically, for example in cloud-based accounting or invoicing software, you must keep them in an electronically readable format, even if you print paper copies.

The records must be kept at your establishment or residence. Canada or remain accessible there; hosting your records on a foreign server requires written authorization from the CRA. Check this with your cloud provider and, if in doubt, ask your accountant: it's a one-time setting that covers you for good.

Tax audit: the role of your accountant

A tax audit always follows the same pattern: the auditor requests your records, samples transactions, and demands supporting documentation for each one. Every missing document becomes a potentially disallowed expense, a cancelled input tax credit (ITC) or input tax return (ITR), with interest accruing as a consequence. This is precisely where your accountant makes all the difference.

• He officially represents you. Form MR-69 authorizes your accountant to contact the IRS on your behalf; the IRS representative authorization, online or with form AUT-01, does the same at the federal level. The auditor then contacts a professional who is familiar with the file and the terminology, often a CPA who is a member of the Quebec CPA Order.
• He prepares the file before the meeting. Comparison of registers and documents, identification of sensitive areas, reconstruction of missing documents from suppliers or the bank.
• He oversees the verification process. He responds to requests on time, provides what is requested, and only what is requested, and negotiates realistic deadlines when necessary.
• He defends the result. If the proposed contribution is questionable, he prepares your representations, then the notice of objection if necessary.

In terms of costs, maintaining well-organized accounting records throughout the year is far less expensive than rebuilding them under pressure during an audit. To give you some perspective: an accountant costs a company approximately $2,000 per year on average, with most engagements ranging from $500 to $6,000 depending on the sector. Based on the actual fees of 1,248 engagements completed through Bankeo (2024-2026), out of more than 15,000 requests received, the Bankeo Barometer details the price ranges by service. Our tips for reducing your accounting costs confirm this: well-filed documents are the primary way to save on your accounting bill. And to compare profiles near you, browse the audited accountants in the Bankeo network .

Frequently asked questions

How long do I need to keep my supporting documents?

The basic rule is six years after the end of the last taxation year to which the documents relate, and this applies to both the CRA and Revenu Québec. Certain documents must be kept longer: a corporation's permanent records for up to two years after its dissolution, capital property documents for up to six years after the disposition of the property, and any objection or appeal file until the final settlement.

From what point does the six-year period begin to run?

The retention period ends at the end of the tax year to which the document relates, not the date of the document. Therefore, an invoice from March 2026 relating to the 2026 tax year must be kept until the end of 2032. There are two exceptions: a late return starts the retention period from the date of submission, and a year for which no return is filed does not start the timer; in this case, the documents must be kept.

Can I keep my documents only in digital format?

Yes. The IRS and Revenu Québec accept scanned copies and electronic records, provided they are legible, understandable, and accessible throughout the retention period, and that you can produce them upon request. Records created electronically must remain in a machine-readable format and be hosted outside of the Canada requires written authorization from the CRA.

Can I destroy my documents before the end of the six years?

Only with written authorization. At the federal level, the request is made using the CRA's T137 form; in Quebec, a written request must be sent to Revenu Québec. Destroying records without authorization can result in the denial of expenses, input tax credits (ITCs), input tax refunds (ITRs), and penalties. If in doubt, keep the document.

What happens if an invoice is missing during an audit?

The auditor may reject the expense, the corresponding CTI (Compensation for Technical Incentives) or RTI (Reimbursement for Technical Incentives), with interest. Sometimes the situation can be rectified: your accountant can reconstruct the proof with a duplicate receipt from the supplier, a bank statement, or a contract. However, it's best to scan each receipt as soon as you receive it, because a bank statement alone is generally insufficient as supporting documentation.

What is the role of the accountant in the event of a tax audit?

Once duly authorized, with form MR-69 for Revenu Québec and the CRA representative authorization, they become your official contact: they prepare the documents, respond to the auditor, frame the requests, and prepare a notice of objection if the assessment is contestable. In terms of budget, an accountant costs on average approximately $2,000 per year, with most engagements ranging between $500 and $6,000, based on the actual fees of 1,248 engagements completed through Bankeo (2024-2026), out of more than 15,000 requests received.

Official sources

1. Revenue Agency of the | Canada , Maintaining accounting records;
2. CRA, Form T137, Request for Authorization to Destroy Records
3. Revenu Québec, Registers and supporting documents;
4. Revenu Québec, Form MR-69, Authorization for the Release of Information or Power of Attorney
5. Quebec CPA Order