Example 1 - Delivery van

ABC Restaurant Inc. uses a van that has been specially modified so it can be used more efficiently to transport and deliver food orders. The employer has asked the manager, Leslie, to take the van home at night in case she needs to respond to an emergency at the restaurant, such as an after hour alarm or to fill in on busy nights. Leslie is not allowed to use the van for any other personal use. Since she is the manager, her employment duties do not include delivering food orders, even on a busy night.

ABC Restaurant cannot use the lower (26 cents per kilometre) rate when calculating Leslie's taxable benefit. These circumstances do not meet all of the conditions of the administrative policy. Although the vehicle has been modified for business needs, Leslie does not need the van to perform her employment duties, so she does not have to bring it home for valid business reasons.

Example 2 - Emergency vehicle

Mary works for a gas utility company and has to be on-call two weekends out of every month. On these weekends, she has to be able to respond to emergencies directly from her home. The van, which the employer provides Mary for these weekends, displays the company's name, has a light on the roof and has been permanently modified to carry specialized equipment to the scene of the emergencies. The company has a written policy prohibiting any other personal use of these vehicles, other than driving between the worksite and home. Mary has not used the vehicle for any other personal driving.

Since this situation meets all of the conditions of the administrative policy, Mary's employer may calculate the personal use of the vehicle using the reduced rate of 26 cents per kilometre.