Automoble Benefits, February 07, 2006

Employer-owned automobiles made available to employees require reporting of a taxable benefit on the T4 for the standby charge and the operating benefit. This may be a complicated calculation. For example, if the personal kilometres are less than 20,000 and the automobile is used more than 50% for business, the standby charge and operating benefit are reduced accordingly. CRA provides a valuable online tool to calculate taxable benefits at www.cra.ga.ca/autobenefits-calculator. Also see Interpretation Bulletin IT-63R5.

For further information see VTN Monthly Tax Update Seminar, Issue No. 293.

 

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