Record Retention

Books and records are required to be kept in a way that will ensure the reliability and readability of the information recorded.
The Canada Revenue Agency recognizes either of the following as records:
1. traditional books and records (including supporting source documents) produced and retained in paper format; and
2. books and records produced and retained in an electronically readable format that can be related back to the supporting source documents and which are supported by a system capable of producing an accessible and useable copy.
Under the Act, books, records, and their related accounts and source documents have to be kept for a minimum of six years from the end of the last tax year to which they relate.
The minimum retention period for the records referred to above is generally determined by the last tax year when a record may be required for purposes of the Act, and not the year when the transaction occurred and the record was created. For example, documentation relating to long-term transactions such as records supporting the acquisition and capital cost of investments and other capital property held by a person should be maintained until the day that is six years from the end of the last tax year in which such a transaction could enter into any calculation for income tax purposes.
Some records that should be retained for the period ending on the day that is two years after the day that the corporation is dissolved are:
i. any record of the minutes of meetings of the directors of a corporation,
ii. any record of the minutes of meetings of the shareholders of a corporation;
iii. any record of a corporation containing details with respect to the ownership of the shares of the capital stock of the corporation and any transfers thereof;
If ever unsure on the retention period it is safest to retain the records and contact HGA for further direction and assistance.

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