What Documents Should You Keep & What Should You Shred?

Updated June 2025

When it comes to managing personal or business paperwork, one of the most common questions is: Which documents should I keep, and which ones should I shred? In Canada, certain documents are required to be retained for a set number of years under federal or provincial laws—especially for tax or legal reasons—while others can be securely shredded sooner to protect your privacy.

To help you stay organized and protect sensitive information, we’ve put together this easy-to-follow guide based on Canadian record retention guidelines.

Documents to Shred Immediately

Some documents contain sensitive personal information but have no legal or tax value once used. These should be shredded right away to prevent identity theft.

• Paid utility bills and phone bills (unless tax-deductible)

• Documents with personal information, such as:

• Account numbers

• Birthdates

• Passwords or PINs

• Signatures

• Social Insurance Numbers (SIN)
  

Shred After 1 Month

• Credit card and bank statements

Shred after confirming the charges are accurate and payments are complete. Keep longer if they support tax deductions or major purchases.

Shred After 1 Year

• Pay stubs

• Match them to your T4 slips and tax return, then shred.

• Medical records and bills

• Keep for at least 1 year after payment. If the bill is related to a dispute or long-term treatment, retain for up to 5 years.

• Other short-term records such as:

• Car repair bills

• Prescription receipts

• Employee expense reports

• Freight/shipping invoices

• Accounts payable/receivable

• Budget projections
  Keep these for at least 1 year; some businesses retain them for up to 4 years to support audits or claims.

Shred After 7 Years (CRA Guidelines)

According to the Canada Revenue Agency (CRA), individuals and businesses should keep tax-related documents for a minimum of 6 years from the end of the last tax year to which they relate. However, to be safe, most experts recommend retaining tax documents for 7 years.

• Personal and business tax returns

• T4s, T5s, and all supporting documents

• Year-end bank and investment statements

• Receipts for tax-deductible expenses

• Sold property documents (title, deed, purchase/sale agreements)

• Payroll records and employee timesheets

• Terminated employee files and withholding tax records
  

Keep for Extended Periods

• Insurance policies

• Keep documents for the life of the policy plus 5 years, in case of future disputes.

• Home ownership and improvements

• Retain records for 6 years after the home is sold, especially if renovations impact capital gains calculations.

• Accident or legal claims

• Keep records for up to 7 years after resolution, as civil limitations in Canada often extend to this timeframe.
  

Documents to Keep While Current

These documents should be retained for as long as they are active or in use. Expired versions should be shredded securely if they contain personal data.

• Product warranties and receipts

• Appliance manuals

• Current insurance policy statements

• RRSP and investment plan statements

• Lease or loan contracts

• Memberships and utility agreements

• Social Insurance Number confirmation letters
  

Documents to Keep Forever

Some records should be permanently retained due to their legal, personal, or historical value. These include:

• Birth, marriage, and death certificates

• Divorce decrees

• Wills and powers of attorney

• SIN cards and passports

• Educational diplomas and transcripts

• Pension and retirement documents

• Business licences and legal judgments

• Mortgage or loan repayment confirmations

• Securities and trade confirmations
  

Why Document Shredding Is Important

Whether you’re clearing out old paperwork or managing ongoing records, secure shredding is crucial to protect your identity, comply with privacy laws, and keep your home or office clutter-free. In Canada, privacy legislation like PIPEDA (Personal Information Protection and Electronic Documents Act) requires that personal information be destroyed securely when no longer needed.

Need Secure Shredding in Alberta?

Merlin Shredding offers mobile, on-site shredding services for both residential and commercial clients. We help you dispose of confidential documents safely and in compliance with Canadian privacy laws.

📞 Call us today at 403-340-2401
📧 Email: info@merlinshredding.com

We’re here to help with scheduled pickups or one-time purges.