Subsection 5800(1)
Administrative Policy
14 June 2013 External T.I. 2012-0461301E5 F - Retention of books and records
In response to a general inquiry respecting the inter-relationship between ITA s. 230(4) and Reg. 5800(1), CRA paraphrased s. 230(4), and Regs. 5800(1)(a) and (b), and stated (TaxInterpretations translation):
Therefore, a dissolved corporation must retain for a period of two years following its dissolution the Books and Records which it already was required to retain for a period of 6 years under ITA paragraph 230(4)(b).
Thus, a Book or Record contemplated by Reg. paragraph 5800(1)(a) must be retained until the expiration of two years following the dissolution of a corporation without regard to the retention period of 6 years contemplated in ITA paragraph 230(4)(b). A Book or Record which is not so contemplated must instead be retained until the expiration of 6 years from the end of the taxation year to which it relates, unless it relates to a dissolved corporation, in which case it must be retained for two years from the corporation's dissolution.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 230 - Subsection 230(4) | relationship between 2-year post dissolution and 6-year hold tests | 157 |
| Tax Topics - Income Tax Act - Section 230 - Subsection 230(4) - Paragraph 230(4)(a) | generally only the GL rather than ancillary journals or back-up are subject to the extended corporate accounting-record retention period under s. 230(4)(a) | 279 |
Paragraph 5800(1)(a)
Subparagraph 5800(1)(a)(iv)
Administrative Policy
5 July 2023 External T.I. 2022-0954271E5 F - Retention of books and records
Regarding whether the term “summary” in Reg. 5800(1)(a)(iv) refers only to the summary items posted to the general ledger (GL) or requires more details, such as the names of the parties and the dates of the transactions, CRA stated:
[T]he term "summary" refers to the summary, with respect to each of the transactions considered individually, posted from the journals to the general ledgers. … [Thus it] refers to an abbreviated version of the entries for each transaction rather than to the consolidation of transactions over a given period.
Regarding whether only the GL needed to be retained until two years after dissolution, CRA stated:
Generally, the summary of each transaction recorded in the journals, considered individually, is transferred to the general ledger. However, in some cases, the general ledger may present only a total for several transactions otherwise presented individually in another book of final entry, such as a subsidiary ledger. In such a case, it would be necessary to refer to the subsidiary ledger in order to obtain a summary of each of the transactions considered individually, and we are therefore of the view that both such a subsidiary ledger and the general ledger will be subject to subparagraph 5800(1)(a)(iv) … .
Regarding the retention period for accounts and vouchers relating to information presented in the general ledger, CRA stated:
Notwithstanding the wording of subsection 230(4) of the Act … the vouchers and accounts required to verify the information contained in the general ledger or any other book of final entries are generally covered by the retention period provided for in paragraph 230(4)(b) … and must therefore be retained for six years following the end of the last taxation year to which they relate.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 5800 - Subsection 5800(1) - Paragraph 5800(1)(a) - Subparagraph 5800(1)(a)(v) | special contract is one containing an unusual provision | 51 |
Subparagraph 5800(1)(a)(v)
Administrative Policy
5 July 2023 External T.I. 2022-0954271E5 F - Retention of books and records
Regarding the meaning of "special contracts or agreements," CRA stated:
Generally speaking, we are of the view that a special contract or agreement is one that includes particular provisions or conditions that are not generally found in a contract or agreement of a similar nature.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 5800 - Subsection 5800(1) - Paragraph 5800(1)(a) - Subparagraph 5800(1)(a)(iv) | generally only the GL rather than ancillary journals or back-up are subject to the extended corporate accounting-record retention period | 300 |