CRA confirms that an employee cannot access the 2019 business use by a predecessor of a car to generate standby-charge relief under s. 6(2.3) in 2020/2021

Although an employee must use the employer-provided automobile over 50% in the course of the employment in order for a reduction under the standby formula in s. 6(2) to be available, the COVID-relief rule in s. 6(2.3) deemed an employee who used an automobile more than 50% of the distance driven for business purposes in 2019 to have done the same in 2020 and 2021. CRA confirmed that where a position was filled by a replacement employee in 2020, the 2019 business usage by the predecessor could not be used by the current employee to access the relief under s. 6(2.3).

Neal Armstrong. Summary of 13 January 2022 External T.I. 2021-0900691E5 under s. 6(2.3).