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Bookkeeping compliance in Canada comes down to four habits: keep your records for six years, register for and file GST/HST when you pass $30,000, remit payroll on time, and file your income tax return by the deadline. Miss the payroll one and the CRA’s penalty runs from 3% to 10% of the amount.
How long do you have to keep bookkeeping records?
Six years from the end of the last tax year they relate to. That’s the CRA’s rule, and you need the CRA’s permission to destroy anything sooner. Records means ledgers, journals, financial statements, returns and the paperwork behind them: invoices, receipts, bank statements.
Where you keep them counts. The CRA says records should be at your Canadian home or business, and storage with a third party needs its permission. If your books live in an online tool, read the CRA’s page on keeping records or ask your accountant how it applies. We couldn’t settle that from one page, so don’t take our word for it.
When must you register for GST/HST?
Once your taxable sales pass $30,000 in a single quarter or across four quarters in a row. You then have 29 days to register. Some businesses, taxi and rideshare drivers among them, must register whatever they earn. You can also register voluntarily under the limit.
After that, bookkeeping has to track tax on both sides: what you charged and what you paid. On a $2,500 invoice, the GST/HST calculator gives $325.00 of HST at Ontario’s 13%, and $374.38 of GST and QST together in Quebec. If your books show a different number, find out why.
Returns fall due one month after the end of a monthly or quarterly reporting period. Annual filers get three months after the fiscal year end. The CRA assigns your period, and you can only ask for a more frequent one.
What does the CRA expect on payroll?
Employers must take the deductions from pay and send them in, together with their own share of CPP and EI. Your due dates depend on your remitter type, which the CRA sets from your past payroll size, so check the letter or the My Business Account before you plan.
Here’s what one employee costs. An Ontario employee paid $4,166.67 a month has $821.26 held back and $325.65 of employer CPP and EI added, so $1,146.90 goes in that month, per the payroll remittance calculator. Late by one to three days, and the penalty is 3%. More than seven days, or nothing sent, is 10%. Failing to deduct at all brings a 10% penalty on what should’ve been taken, and you’re on the hook for both shares.
T4 slips go out to employees and to the CRA by the end of February. The payroll deductions calculator shows what each pay stub should carry, and a long list of small mismatches there is usually the first sign that something is set up wrong.
Which income tax dates matter to your bookkeeping?
| Who | Filing | Payment |
|---|---|---|
| Self-employed individual, December 31 year end | June 15 | April 30 |
| Corporation | Six months after year end | Check the CRA page for your case |
| Employer, T4 slips | End of February | Not applicable |
| GST/HST, monthly or quarterly | One month after the period | Same day as the return |
Weekend dates shift to the next business day, so look up the exact calendar day each year. The CRA also publishes yearly deadline pages. Annual GST/HST filers with net tax of $3,000 or more in each year may owe instalments too. The self-employed tax calculator estimates the bill so you can set money aside, though it leaves out GST/HST and EI.
Corporations can get a rough tax figure from the corporate tax calculator. It ignores phase-outs and associated companies, so it’s a planning number and not a filing number.
What mistakes cause the most trouble?
Mixing personal and business money, for one. It makes every review harder, and the CRA may ask you to justify each item. Then there’s guessing at tax you charged, instead of tracking it. Late payroll payments hurt the most because they carry a penalty right away.
Some owners also throw out receipts after a year or two, assuming the bank record is enough. It isn’t. The rule says six years, and a bank line rarely shows what was bought.
Ask a bookkeeper or accountant who tracks each deadline. Don’t assume they do unless the scope says so in writing.
Where the numbers come from
Record keeping, the GST/HST registration limit, reporting periods, payroll penalties and the corporate filing deadline come from Canada Revenue Agency pages, checked on September 30, 2026. Payroll and sales tax examples come from the calculators on this site with 2026 rates. Provincial rules, such as Quebec’s, sit with the provincial revenue agency, and we haven’t covered every one here. This site has no link with any government body.
Frequently asked questions
How long must a Canadian business keep its books?
Six years from the end of the last tax year the records relate to, unless the CRA gives permission to destroy them earlier.
When do I have to register for GST/HST?
When your taxable sales pass $30,000 in a single quarter or over four quarters in a row. Registration must be done within 29 days of that point.
What is the penalty for late payroll remittances?
The CRA lists 3% for one to three days late, up to 10% for more than seven days or no payment.
When are T4 slips due?
By the end of February for the previous calendar year. Check the CRA's yearly deadline page for exact dates and any relief.
Are Quebec rules the same?
Not entirely. Quebec has its own sales tax and payroll registrations with Revenu Quebec, which we haven't covered here.
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.