Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
XXXXXXXXXX 933700
Attention: XXXXXXXXXX
December 23, 1993
Dear Sirs:
Re: Proposed Amendment to Automobile Operating Cost Benefit
This is in reply to your facsimile memorandum dated December 19, 1993, and our subsequent telephone conversation (Szeszycki/XXXXXXXXXX) of December 22, requesting clarification on the effect of a reimbursement by the employee of operating costs, related to the personal use of an employer-provided automobile, on the calculation of the benefit.
As pointed out in our telephone conversation, the reference in your memorandum to a proposed amendment to subsection 6(2.2) of the Income Tax Act (the Act), as had been suggested in the Department of Finance Information release dated March 30, 1993, indicated that you had not been made aware of the subsequent release in August, 1993 in which that draft legislation had been revised. The subsequent draft legislation changed the presentation of the amendment by proposing to repeal subsection 6(2.2) of the Act altogether while incorporating its substance in new paragraph 6(1)(k).
Your enquiry remains relevant, however, under the August, 1993 draft legislation. You have asked whether the total reimbursement required, in order to eliminate the need to calculate an operating cost benefit, is a reimbursement of actual operating expenses paid by the employer that relate to the personal use of the automobile, or a reimbursement of an amount determined by multiplying the total personal kilometres driven by 12 cents. As proposed, the legislation would call for the reimbursement by the employee of the total personal portion of actual operating costs and any related Goods and Services Tax paid by the employer on his or her behalf.
This response is provided on the basis that the draft legislation accompanying the Department of Finance's News Release #93-053 dated August 30, 1993 is passed into law in substantially the same form as proposed.
We hope our comments will clarify your understanding of the proposed amendments to the automobile benefit rules.
Yours truly,
P.D.Fuoco for Director Business and General Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1993
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1993
Email this Content