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.
Principal Issues: Whether an employer calculated correctly the automobile benefit of an employee who uses his employer's car solely for travel between the various work locations and his home.
Position: No comments given. We suggested that the employee discuss the issue with his employer.
Reasons: The enquiry was from an employee whose employer had just recently gotten comments from us re: the same issue. If an employer and an employee disagree as to the amount of automobile benefits received by the employee, the TSO should be contacted to help resolve the difference of opinion.
XXXXXXXXXX J. Gibbons
5-983182
January 21, 1999
Dear XXXXXXXXXX:
We are replying to your letter of November 25, 1998, concerning the application of the standby charge for use of an employer’s automobile. XXXXXXXXXX.
As you may be aware, it is your employer’s responsibility to determine and report employment income, which includes taxable benefits for the use of an employer’s car. Your employer has recently written to us with questions concerning this issue, and we have provided comments. Because of an employer’s reporting responsibilities, we suggest that you first discuss any questions about the calculation of your taxable benefits with your employer. If you and your employer disagree, we suggest that you contact officials in your local tax services office to help resolve your differences.
The determination of employment benefits for the use of an employer’s vehicle can be a complex issue. This issue is discussed is detail in Interpretation Bulletin IT-63R5, “Benefits, Including Standby Charge for an Automobile, from the Personal Use of a Motor Vehicle Supplied by an Employer - after 1992,” which we have enclosed for your benefit. You should note our position on what is considered personal use of a motor vehicle supplied by an employer in paragraph 5 of this IT. In addition to what would obviously be considered personal use, i.e., vacation trips, personal shopping trips, etc., included in personal use is travel between an employee’s place of work and home. The amount of the personal benefit will be included on your annual T4 slip issued by your employer and must be reported as income on your T1 income tax return.
We trust that these comments will be of assistance.
Yours truly,
J.F. Oulton, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Enclosure
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