Three Benefits of Using Commercial Storage for Your Canada Revenue Agency (CRA) Tax Documents
Just a heads-up: The CRA deadline for filing self-employed commercial business taxes is Thursday, June 15.
And when it comes to your taxes, it pays to have your returns, files and receipts kept safe and secure; not to mention easily accessible too – just in case the CRA decides to audit your business.
Reason 1: The CRA may ask for anything at any time
No matter how big or small your business is; even if it’s just a side project that only brings in a few hundred dollars per month, the CRA insists that you have everything related to it.
According to the CRA website, here’s how they select files for business audits:
The CRA’s risk-assessment system selects files to audit based on a number of conditions such as the potential for errors in tax returns or indications of non-compliance with tax obligations. The CRA also looks at the information it has on file and may compare that information to similar files or consider information from other audits or investigations.
They are also allowed, by law, to ask for things like:
- Business ledgers
- Bank statements
- Invoices and receipts
- Mortgage documents
- Accountant records
And if you don’t present this information in a timely manner, you could be fined for it.
Document storage keeps all that paperwork in a single, easy-to-remember and always accessible location.
Reason 2: The CRA keeps your documents; even if you don’t (so make sure you have them too)
Do you remember the details of the business tax return you filed in 2011?
Probably not. But the CRA does.
The Canada Revenue Agency keeps your information on file for six years (minimum) and can ask you to provide any documentation related to past returns:
- Moving supply receipts when you moved from one location to another
- Extra inventory or product purchases (even if you never actually used them for your business)
- The bill for the client appreciation party you threw
Now, take a look at your current office or business location.
Is there enough room to properly and safely store six years’ worth of papers, binders, invoices and books?
On the other hand, though, a dedicated document self-storage unit has more than enough space to keep every shoebox, folder and file box you have neat, dry and secure.
Reason 3: Your business tax documents are guaranteed to be safe
Storage space (or lack thereof) and document protection are the main reasons why your critical CRA documents may be at risk.
Just imagine the hassle and inconvenience if you lost six years of business and tax records to something like:
- Water damage
- Dampness or humidity exposure
- Theft or burglary
- Accidental misplacement
- Inadvertent shredding
Now think just how more annoying that would be if the CRA was asking to see important paperwork you just didn’t have.
Unfortunately, the CRA may not be as forgiving. As referenced on their website:
By law, you have to keep adequate books and records to determine your tax obligations and your entitlements. Generally, books and records must be kept for a minimum of six years.
In other words, if you don’t have what the CRA wants when they want it, you may be out of luck.
Why put yourself and your business through all that risk?
Document storage is specifically designed to keep files and papers in the exact same condition as when you left them.
Safely store your business and CRA documents with us
Keeping your CRA tax records with us accomplishes three things:
- It ensures they’re dry, safe and secure
- It frees up valuable office space for documents and things you’ll be using on a more regular basis
- And finally, in certain instances, you may be able to actually claim your storage rental as a tax deductible expense
Want to know more about our document storage units?
Want to see them in person for yourself?