How to properly store tax documents?

The storage of tax documents is a critical aspect of financial management for all Calgary residents, from individuals to business owners. Proper organization and storage of documents not only ensures compliance with the requirements of the Canada Revenue Agency (CRA), but also helps protect your financial interests in the event of an audit or other tax investigations.

Legal requirements for document retention

Standard six-year rule

The basic rule established by the CRA is that all tax documents and supporting materials must be kept for a minimum of six years from the end of the last tax year to which they relate. This rule applies to individuals, corporations, partnerships, and trusts.

For example, if you filed your 2024 tax return in April 2025, the six-year period begins at the end of 2024, meaning that all relevant documents must be kept until the end of 2030. This time frame allows the CRA to access your records if it needs to audit or reassess your return.

Exceptions to the six-year rule

There are important exceptions to the standard six-year rule that require longer document retention:

  • Late filing of returns: The six-year period begins on the date the return is actually filed, not at the end of the tax year.
  • Property-related documents: kept indefinitely (purchase/sale of real estate, improvements, etc.).
  • Active objections and appeals: documents are kept until the case is completely closed.
  • Dissolution of corporations: records are kept for two years after the date of dissolution.

Types of documents to keep

Personal tax documents

  • Copies of filed returns, assessment/reassessment notices

  • Income slips (T4, T4A, T5, etc.)

  • RRSP contribution receipts

  • Education expense documents (T2202)

  • Records of medical expenses

  • Charitable donation receipts

  • Records of child care expenses

  • Rental income documents

  • Invoices for self-employed individuals

  • Bank statements

Business documents

  • Sales invoices

  • Purchase receipts, contracts, warranties

  • Bank deposit slips, canceled checks

  • Cash receipts, credit card receipts

  • Purchase orders, work orders

  • Emails and other correspondence

  • Financial statements, payroll documents

  • GST/HST records

Storage requirements

Physical location

CRA requires records to be stored in Canada unless written permission is granted. Records that are accessible electronically from Canada but stored outside Canada are not considered to be stored in Canada without such permission.

Security and accessibility

Documents should be protected from theft, fire, flood, cyber threats, and technical failure.

Electronic storage of documents

Acceptable formats

  • Paper
  • Paper scanned into a readable electronic format
  • Electronic format from the time of creation

Digital scanning requirements

  • Accurate reproduction of the paper document
  • Complete transfer of information without loss of quality
  • Compliance with national standards

Technical requirements

  • Format that CRA can process
  • Ability to provide secure documents in unencrypted form
  • Compatibility with CRA software

Backup and data protection systems

Backup requirements

  • Storage of copies on different media
  • Protection against damage (light, humidity, temperature)
  • CRA recommendation — store in Canada
  • Periodic recovery testing

Data security

  • Digital records: passwords, 2FA, encryption
  • Physical records: safes, fireproof cabinets
  • Cloud: providers that meet confidentiality requirements

Organizational systems

Document categorization

Examples of categories: income, expenses, donations, property, investments, medical, education.

Naming system

Example: 2024_Income_Statement 2024_Charitable_Donations

Regular maintenance

Quarterly or annual review and cleanup of documents.

Specialized storage services in Calgary

  • Record Nations Calgary — physical and cloud storage, climate control

  • RecordXpress Calgary — secure storage, document scanning

  • Tippet-Richardson Records Management — high-security storage solutions for businesses

  • Consentia Calgary — scanning, cloud solutions

  • Tecbound Technology Calgary — backup and recovery

  • Ironclad TEK Calgary — Backup-as-a-Service with isolated storage

Disaster preparedness

Disaster protection

  • Electronic backup
  • Cloud storage
  • Documenting valuables (photos/videos of property)

Disaster recovery plan

  • Annual plan update
  • Weather information channels
  • Copies of documents in another secure location

Document destruction

When to destroy

  • After the retention period has expired
  • For early destruction, written permission from the CRA (Form T137)

Methods of destruction

  • Shredding paper
  • Secure deletion of electronic records (wipe, destruction of media)

CRA support in case of natural disasters

  • Form 4506 to replace returns
  • Form 4506-T/4506T-EZ for transcripts
  • Possible deferral of penalties and interest
  • Phone: 1-800-959-8281

Conclusions and recommendations

Proper tax document storage in Calgary requires a combination of legal compliance, organization, and security. Following CRA rules, understanding exceptions, reliable backup, and emergency preparedness are key to maintaining financial security and peace of mind.