CRA affirms general reasonability of a car allowance rate of $0.54/$0.48 per kilometre including for electric vehicles

In S2-F3-C2 respecting employee vehicle allowances, CRA states that “generally, a per-kilometre rate will be considered reasonable if it is equal to the rate prescribed for the particular province in [Reg.] 7306,” which currently is at the rate of $0.54 per km for the first 5,000 km and $0.48 per km for the excess. CRA affirmed this position in response to a query pointing out that in some technical interpretations, CRA had referenced the Treasury Board rates, which currently are $0.49 per km.

Electric cars are not treated differently.

Neal Armstrong. Summaries of 2 February 2017 Quebec CPA Individual Taxation Roundtable, Q.1.5, under s. 6(1)(b)(vii.1) and s. 6(1)(k)(v).