Principal Issues: Whether employees are subject to taxable employment benefits that are calculated on a basis other than using the "standby charge", because the pick-up trucks are not considered "automobiles" under the Act.
Position: Question of fact.
Reasons: Certain vans, pick-up trucks or similar vehicles are excluded from the definition of automobile in subsection 248(1), depending on their use in transporting goods, equipment or passengers in the course of gaining or producing income. For example, subparagraph (e)(i) excludes such a vehicle that "has a seating capacity for not more than the driver and two passengers and that, in the taxation year in which it is acquired or leased, is used primarily for the transportation of goods or equipment in the course of gaining or producing income". Subparagraph (e)(ii) excludes such a vehicle "the use of which, in the taxation year in which it is acquired or leased, is all or substantially all for the transportation of goods, equipment or passengers in the course of gaining or producing income". Subparagraph (e)(iii) excludes a motor vehicle of a type commonly called a pick-up truck that is used in the taxation year in which it is acquired or leased primarily for the transportation of goods, equipment or passengers in the course of earning or producing income at one or more locations in Canada that are, in respect of any of the occupants of the vehicle, a special work site pursuant to subparagraph 6(6)(a)(i) or a remote work location pursuant to subparagraph 6(6)(a)(ii). The subparagraph (e)(iii) exception only applies where the taxpayer was required by the taxpayer's duties to be away from the taxpayer's principal place of residence, or to be at the special work site or location, for at least 36 hours.
