Automobile and Motor Vehicle Benefits for Employees

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If you are an employee that uses your own vehicle for work and is refunded by your company for that use, such as paying for fuel and wear and tear, then this reimbursement may qualify you for taxable motor vehicle benefits. motor vehicle benefitsAn allowance is any payment that employees receive from an employer for using their own vehicle in connection with or in the course of their employment without having to account for its use. This payment is in addition to their salary or wages. An allowance is taxable unless it is based on a reasonable per-kilometre rate. There are however, many difficulties and complexities associated with the benefit or allowance. Some factors that come into question when determining if you are eligible or not are :

  • -What is an what is not an automobile?
  • -When does a benefit arise?
  • -How to calculate the benefit for employer provided automobiles?
  • -How to calculate the allowance you give to your employee for using their own automobile?

To understand the restrictions and find out if you can claim driving expenses contact us today at info@cpa4toronto.com we can help you to understand the complex nature of your claim and help find you other potential benefits as well. -Nicole Dronca, CGA