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.
Dear Sirs:
This is in reply to your letter of July 25, 1989, wherein you requested our opinion on whether an employer provided automobile would be considered to be "available to a taxpayer" for the purposes of subsection 6(2) of the Income Tax Act (the "Act") in the following circumstances:
- 1. The automobile is left, at the employee's discretion, in the employer's parking lot when the employee is out of town for business or other purposes. However, the employer is notified that the automobile is being parked in their lot, and the keys are turned in to the employer.
- 2. See as 1, except that the employee does not notify the employer that the automobile is being parked in the employer's lot, and the keys are not turned in to the employer.
- 3. The automobile is left at an airport parking lot while the employee is out of town.
- 4. Same as in 1, except that company policy provides that the automobile be left with the employer while that employee is out of town.
Based upon the situations as outlined above, it is our view that in situations 1 to 3 inclusive, the comments in paragraph 15 of IT-63R3 would be applicable, That is, the "total available days" for the purposes of the computation of a reasonable standby charge pursuant to subsection 6(2) of the Act will include the days during which the automobile is made available to the employee (as in situations 1 to 3 inclusive) and each day thereafter until such time as the employee is required by the employer to return the automobile and the control over its use to the employer. It is also our view that situation 4 above is the only scenario where the employee is required by the employer to return the automobile and the control over its use to the employer and, accordingly, this period would not be counted in the "total available days" for the purposes of the computation of a reasonable standby charge.
We trust our comments will be of assistance to you.
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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