Keeping Records Outside of Canada

If you are carrying on business in Canada, the Income Tax Act requires that you keep your books and records in Canada.


That requirement includes both paper documents and electronically stored documents.  And BTW electronic records stored outside of Canada and accessed in Canada don't count.  The server should be in Canada.


What if you are carrying on business but don't live in Canada year round?


Well, CRA says that if you want to store your records outside of Canada, two things must happen.  The first is that you get permission from CRA.  This is done by writing to the local Tax Services Office.  The second is that you must make your records available in Canada on request.


The second part of the request can cause issues if you have a lot of records or if you need access to them where they are stored.  In that case, your company may be able to make arrangements for the CRA auditor to travel to the records - at your expense.