Car Allowance

  • Harman Dhatt PCPHarman Dhatt PCP
    Member since Sep 2022

      We provide the company vehicle to our employees for business purposes only. They must park the car in the company yard at the end of the day. This is a waste of time. We are looking at the way by which technicians can take trucks homes, but it should not be a taxable benefit for them.
      Do you have any suggestions?

      August 11, 2023 at 19:30
    • Shona LaJambe-FashShona LaJambe-Fash
      Member since Sep 2022

        As far as I am aware anytime they take a company vehicle home it would be a taxable benefit. The tax implication for the employee is minimal so its really a benefit to the employee to not have to use their own vehicle.

        August 16, 2023 at 11:57
      • Kasey Johnstone, PCPKasey Johnstone, PCP
        Member since Apr 2023

          We’re going through an employer compliance audit with the CRA right now. This audit looks at things like taxable benefits and the only way our company vehicles were considered not a taxable benefit is because they are parked on our company property when not in use for business purposes.

          The second they take those vehicles home it is now a taxable benefit. Think of it this way, if I’m driving to & from work in a work vehicle, now my commute cost is being covered by the company (therefore it’s taxable). If you guys do choose to go the route of allowing employees to take company vehicles home, you should just go full-fledged into it!

          Best of luck 🙂

          August 16, 2023 at 12:15
        • Gail MacphersonGail Macpherson
          Member since Jun 2022

            We allow our employees to take company vehicles home when they are on-call. We had them sign a personal use of a company motor vehicle, which outlines that they must submit a mileage log sheet recording business and personal mileage each day whenever they are on-call. We use the log sheets to calculate the taxable benefit at the fixed rate. It is a very manual process, but necessary to stay compliant.

            August 16, 2023 at 12:30
          • Harman Dhatt PCPHarman Dhatt PCP
            Member since Sep 2022

              Thanks, Gail, we are also doing that. But now I was asked to figure out how we can have them use the company vehicle, and there should not be any taxable benefits. I contacted NPI, and the only response I got is if the vehicle is used for only business purposes.

              August 16, 2023 at 12:51
            • Harman Dhatt PCPHarman Dhatt PCP
              Member since Sep 2022

                Thanks Everyone. These comments will help me to support my research.

                August 16, 2023 at 13:34
              • Martina Heine, PLPMartina Heine, PLP
                Member since Sep 2022

                  Taxable benefit when using for personal use.

                  August 17, 2023 at 13:46
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