CRA indicates that a minivan with a permanent reduction to a below-four seat capacity could be excluded from being an “automobile”

Employees were provided with a minivan (specially adapted to carry specialized equipment) only during periods that they were on-call to respond to emergency calls from home. CRA indicated that for purposes of the exclusion in (e)(i) of the “automobile” definition for “van”-type vehicles for transporting equipment having a “seating capacity” of under four, it considered a minivan to be a van-type vehicle and that the three seat test would be satisfied "if the modification reducing the number of seats to a maximum of three seats is of a permanent nature.” CRA further confirmed that for purposes of computing taxable benefits under ss. 6(1)(e) and (2) and s. 6(1)(k) (if the minivans were automobiles) or under s. 6(1)(a) (if not), use of the vehicles in responding travelling to and from the customers with emergencies would not be personal use, but conversely for travel between the home and office.

Neal Armstrong. Summaries of 23 May 2023 External T.I. 2017-0713011E5 F under s. 6(2) – A(a) and s. 248(1) – automobile – (e)(i).