Hudema v. The Queen, 94 DTC 6287 (FCTD)

A taxpayer, who was employed in the selling of television advertising in Regina and the surrounding viewer area, received a weekly car allowance of $44 per week and was reimbursed for actual gas, oil, lubrication and parking expenses. His personal use of his car (which was the family's second car) ranged from 35% to 4% in the taxation years in question. In finding that the allowance was a reasonable allowance (with the result that the taxpayer was not entitled to claim any additional deductions under s. 8(1)(f) or (h)), Strayer J. stated (p. 6290):

"He did not demonstrate that it was sensible to make such little personal use of the car he used for his work. Put another way, he did not demonstrate that it was unreasonable for his employer to expect him to use his vehicle in an efficient way, with the allowance being expected only to pay for such incremental use of his car as his work required."

The taxpayer was not required to "pay his own expenses" as required by s. 8(1)(f) or "to pay the travelling expenses incurred by him" as required by s. 8(1)(h) given that the collective bargaining agreement specifically said that no employee was obliged to use his car, although it contemplated that he could be authorized to use his car. Furthermore, the receipt by him of a weekly car allowance of $44 per week plus reimbursement for actual gas, oil, lubrication and parking expenses was found to be a reasonable allowance given that the taxpayer "did not demonstrate that it was unreasonable for his employer to expect him to use his vehicle in an efficient way, with the allowance being expected only to pay for such incremental use of his car as his work required" (p. 6290).