Why You Should Shred Old Tax Documents
Updated May 2025
As another Canadian tax season has come to a close, many of us are left with a growing pile of old documents, receipts, and statements. Once you've filed your return and organized your current financial paperwork, you're likely asking: What should I do with all these old tax documents?
While it may be tempting to just toss them in the recycling bin or store them in a box in the basement, improper handling of outdated tax records can put you at risk of identity theft and non-compliance with CRA guidelines.
What you’ll find in this article:
How Long Do You Have to Keep Tax Records in Canada?
According to the Canada Revenue Agency (CRA), both individuals and businesses must keep all tax-related records and supporting documents for six years from the end of the tax year they apply to.
Keep the following tax-related records for six years:
Tax returns
Receipts
T4s and T5s
Bank statements and investment slips
Employment records
For example, if you filed your 2024 taxes, you must retain all associated documents until the end of 2030.
Failing to produce these documents if requested by the CRA could result in audits, penalties, or reassessments—even years later.
Why Shredding Old Tax Documents Matters
Once the six-year retention period is up, there’s no legal obligation to keep those records. In fact, keeping them longer than necessary increases the risk of your personal or business information falling into the wrong hands.
Outdated tax documents can contain sensitive data, including:
Social Insurance Numbers (SIN)
Business Identification Numbers (BIN)
Employee records
Financial transactions
Credit card or banking details
If disposed of improperly, such documents can be used for identity theft, financial fraud, or corporate data breaches.
Identity Theft and Fraud in Canada
In Canada, identity theft is a growing concern. According to the Canadian Anti-Fraud Centre, thousands of identity fraud reports are filed annually, with real financial consequences for individuals and businesses alike.
Dumpster diving remains a common method for criminals to access discarded paperwork containing personal information. Something as simple as a tax slip or utility bill can be enough to begin building a fraudulent profile.
That’s why shredding—rather than throwing out—your old tax documents is a key part of protecting your privacy.
What Types of Documents Should You Shred?
If a document is no longer needed and contains personal or financial data, it should be shredded. This includes:
Tax returns and slips older than 6 years
Bank statements and cancelled cheques
Credit card statements
Pay stubs
Utility bills
Health or insurance documents
Any mail with your address and account numbers
Even if it doesn’t seem sensitive at first glance, it’s better to be safe than sorry.
At Merlin Shredding, we provide locked secure bins where you can safely store these documents until your next scheduled shredding service.
What Should You Keep?
Some documents should still be kept securely—either in physical form or digitally—for compliance and record-keeping. These include:
Tax records within the 6-year window
Corporate records
Business contracts and leases
Property ownership or mortgage documents
Wills, powers of attorney, and legal agreements
For these, we recommend either encrypted digital storage solutions or locked, fireproof file cabinets.
Secure Document Shredding Services in Alberta
When it's time to dispose of old records, don’t leave it to chance. Professional shredding services offer a safe, compliant, and environmentally responsible way to destroy sensitive information.
At Merlin Shredding, we serve individuals and businesses throughout Red Deer, Edmonton, Calgary, and surrounding Alberta communities.
Our shredding services include:
On-site shredding at your location
Secure off-site shredding
Scheduled shredding programs
Locked bins for document collection
Certificate of Destruction for compliance
Whether you have a few boxes of paperwork or an entire office archive, our trained staff and industrial-grade shredders ensure total confidentiality.
Ready to Shred Your Old Tax Records?
Don't let old documents put your privacy at risk. If you're located in Alberta and need secure shredding services, Merlin Shredding is here to help.
📞 Call us at 1-877-340-2401
📧 Email us at info @ merlinshredding . com
Protect your identity. Stay compliant with CRA requirements. Shred securely with Merlin.