Disposing of financial and tax-related documents before their usual retention period is considered premature destruction of records. In Canada, you generally need to keep these documents for a minimum period defined by the CRA – usually six years. However, certain situations may require you to seek early disposal; for instance, downsizing your office or converting paper-based data into digital formats.
Why Do You Need the CRA’s Permission?
Destroying business accounts or records earlier than the set retention period without the CRA’s agreement could lead to prosecution. Therefore, obtaining written consent from the agency first is crucial. Their confirmation enables you only to dispose of the documents needed.
How Do You Request the CRA’s Permission to Destroy Records?
To secure approval from the CRA for destroying your records early, you or your authorized representatives can go through either of the following two routes:
1. Fill in Form T137: This is an official CRA form titled ‘Request for Destruction of Records.’ You must provide specific details about why you want to destroy these records.
2. Visit Your Local Tax Service Office: Another option is to visit your local tax services office for immediate assistance.
Whether you succeed in getting permission depends on the CRA’s evaluation and interpretation of your provided reasons.
Financial record keeping and navigating Canadian tax laws are often challenging due to their complexity. The NaickerCPA team prides itself on offering extensive knowledge and professional expertise in addressing such complexities.
If you’re in the Port Moody, Burnaby, New Westminster, or Coquitlam areas and need assistance navigating financial challenges or want clarifications on your obligations towards the CRA regarding record-keeping requirements, contact us.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.
