Why Should We Shred Our Old Tax Information?
It’s that time of year again: tax season! As folks in the workplace quickly scramble to get documents together, it can be confusing to get everything in order and properly organized. This includes asking yourself what to do with your old tax papers: do you keep them? Electronically store them? Rip them up in half and throw them away into a recycling bin?
The CRA says individuals “must keep all required records and supporting documents for a period of six years from the end of the last tax year they relate to.” Chances are, you won’t even glance at your tax documents after that. So, what do you do with all these papers?
Note: The CRA has the answer to any question you have for filing income tax for 2020, plus details on Covid-19 relief benefits. Check it out here.
Why should we shred information?
First of all, why is it important to dispose of our old tax information to begin with?
Identity theft occurs when an individual gains access to your personal information. This could be your credit card number, your social security number, or even your driver’s license. Having this information fall into the wrong hands can cause major issues for you and your credit report. Thieves using your personal information can apply for jobs, open credit card accounts, and even apply for loans, all while using your credit card to fund their lifestyle.
Believe it or not, dumpster diving is a method used to obtain information. Think of it as this scenario: you walking down the street, oblivious to the fact that your keys have fallen out of your pocket. Your house, car, office - everything hanging on to your lanyard is no longer secure. And with the right information to piece together, it can be easy to figure out intel or access your private space.
Tax Documents
While it is mandatory to keep tax records for about six years, throwing them away carelessly after this amount of time “because they are outdated” could endanger the security and confidentiality of your business. The sensitive data contained in your tax papers may include employee personal information such as SIN or Business Identification Number, to company-related finances. All of the above may be used as receipts to verify one’s identity.
There are certain documents that we recommend you to shred and destroy even if they are not outdated: pay stubs, monthly statements, and anything that contains credit card information. For your convenience, these documents can be placed in our secure storage bins until your next shredding appointment.
For documents such as tax returns, tax records, corporations records, and contracts, we recommend you store these in a secure manner, either digitally or physically.
Have more questions? Contact us today by calling at 403 340 2401 or emailing at info@merlinshredding.com.