Electronic books and records

Your obligations for maintaining, retaining, and safeguarding books and records when conducting business over the Internet are the same as for any other type of business operation.

These books and records must be sufficient to determine and verify your tax obligations.

You must keep your business records for a minimum of six years from the end of the latest year to which they relate unless written permission is given by the Canada Revenue Agency.

Your books and records:

• must be maintained in Canada unless permission is granted to maintain them elsewhere;
  
  
• must be made available to Canada Revenue Agency officials upon request; and
  
  
• include electronic records that are maintained and created by computerized record keeping systems.
  
  

Electronic record keeping (including e-business records)

If you record any business transactions or business information on a computerized system:

• you must make sure that your computerized system is capable of providing the correct information you need to calculate your tax obligations and entitlements;
  
  
• your computerized records must be retained and easily converted into an electronically readable format and be made available on request to Canada Revenue Agency officials;
  
  
• computerized records (electronic data files) must be kept even when hardcopy is available;
  
  
• if your systems are stored on a Web server outside of Canada it is your responsibility to arrange for the records to be made available upon request;
  
  
• if you use a third party to run your e-commerce business, it is still your responsibility to ensure that the electronic records are complete, are retained, are readable and that they will be made available to Canada Revenue Agency officials upon request;
  
  
• if your records have been encrypted you must ensure that they can be decrypted and produced in an accessible and electronically readable format; and
  
  
• if you change your computerized record keeping system - either hardware or software - you must maintain the capability to retrieve the data already stored on the former system and provide the data in a readable format to Canada Revenue Agency officials, upon request.
  
  

Do you need more information?

The Canada Revenue Agency is prepared to offer advice on keeping, maintaining, retaining, and storing electronic records. If you have questions about books and records or our Electronic Commerce Audit Program, you can contact your tax services office.

Forms and publications

• Keeping Records guide (RC4409)
• IC05-1, Electronic Record Keeping
• IC78-10, Books and Records Retention / Destruction
• GST/HST Memorandum 15.1, General Requirements for Books and Records
• GST/HST Memorandum 15.2, Computerized Records

Related topics

• Keeping Records