Does anyone know how many years back Revenue Canada can go to claim any outstanding taxes that you may owe?

I thought I once read somewhere that they have 12 years to catch you, after that they write it off?

Anyone know for definite?

Thanks

Seven. At least I hope it's seven, I bin everything older than that.

I have just found out that I owe $1,800 + interest from 1995 and they are now, all of a sudden, hounding me for their money.

I just called them and the debt never disappears but they advise you to keep 7 years worth of books for audit purposes.

Feckers

Under the Act, the Department may re-assess tax returns:

(a) at any time in cases of fraud or misrepresentation, or where a waiver, specifying matters on which a reassessment may be issued, has been filed; or

(b) at any time up to 4 years after the date of mailing the original assessment, in all other cases.

For (b) they are talking about the date they mailed the assessment to you. So, if you filed 2007 on time and they assessed you on, say, May 29, 2008, they have until May 29 2012 to audit you. Unless you file late you should be OK with just keeping 6 years, but I keep 6 years plus the current year to be on the safe side.

The problem with destroying old records is that, as Danny B has found, they can go back as long as they like if the have reasonable grounds to suspect a misrepresentation. Without your records how can you prove you have not made a mistake?

I would also recommend keeping invoices for capital assets until 6 years after they have been disposed of in case there is a question of a capital gain or loss.