,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,numb]3 ,,it-#fc;,r#e
,date3 ,augu/ #ba1 #aiie
,subject3 ,9come ,tax ,act--,b5efits1
  ,9clud+ ,/&by ,*>ge = an ,automobile1
  f ! ,p]sonal ,use (a ,motor ,vehicle
  ,suppli$ 0an ,employ]--af #aiib
,ref];e3 ,p>agraphs #f7#a77a71 7e71
  7e4#a71 7k7 & 7l7 & subsec;ns
  #f7#a.a71 7#b71 7#b.a71 & 7#g7 7al
  subsec;ns #ae7#a71 7#a.c71 7#a.d71
  7#e7 & 7#g7 & p>agraph #ab7#a77y77

               ,applic,n
    
  ,? bullet91 : describes ! law = ye>s
af #aiib1 0 revis$ prim>ily 6reflect
am5d;ts 6! law 3ta9$ 9 ,s4,c4 #aiid1
c4#ba 7=m]ly ,bill ;,c-#bg74 ,= ye>s 2f

                                      #a
               ,applic,n             a#a
#aiic1 ref] 6,9t]pret,n ,bullet9
,,it-#fc;,r#d1 dat$ ,m>* #ca1 #aiid4

                ,summ>y
    
  ,! value (! b5efit deriv$ 0an employee
f ! p]sonal use & availabil;y ( an
automobile suppli$ 0an employ] is
requir$ 6be 9clud$ 9 calculat+ !
employee's 9come4 ,? value is an am.t
equal 6a prescrib$ am.t 7curr5tly #ab
c5ts7 p] kilometre = .op]at+ .co/s 9
3nec;n ) p]sonal use &a 8.r1sona# ./&by
.*>ge0 7plus ! equival5t 6! ,gds &
,s]vices ,tax 7,,gst7 on ! /&by *>ge74
,9 g5]al1 ? /&by *>ge is #b@3p p] mon?
(! co/ (! automobile1 or two-?irds (!
l1se co/s calculat$ ) ref];e 6! numb] (
"ds ! automobile 0 availa# 6! employee
or 6a p]son relat$ 6! employee4 ,h["e1 ?
/&by *>ge may 2 reduc$ :5 ! p]sonal use
is less ?an #a1jjj kilometres a mon? &!
busi;s-use por;n (! total kilometres
travell$ is #ij@3p or m1 or :5 !      #b
                ,summ>y              b#a
employee is 5gag$ pr9cip,y 9 sell+ or
l1s+ automobiles4 ,al1 provid$ !
automobile is us$ prim>ily = busi;s
purposes1 an am.t equal 6"o-half (! /&by
*>ge b5efit may 2 us$ z ! am.t (! op]at+
co/s b5efit 9 lieu (! #ab c5ts p]
kilometre calcul,n4
  ,! bullet9 al describes ! am.t (!
taxa# b5efit 6a %>ehold] 6:om a corpor,n
makes an automobile availa#1 ! /&by *>ge
=a memb] (a "pn]%ip or = an employee (a
memb] (a "pn]%ip1 ! taxa# b5efit 6an
employee :5 ! vehicle suppli$ is n an
8automobile0 & an av]ag+ me?od ( det]m9+
! /&by *>ge :5 di6]5t automobiles (a
fleet >e made availa# 6an employee4 ,z
well z 4cuss+ 9 detail ! po9ts m5;n$
abv1 ! -;t>y 2l expla9s ! m1n+ ( v>i\s
relevant ^ws & phrases s* z
8automobile01 8motor vehicle01 8pass5g]
vehicle01 8p]sonal use01 8op]at+ co/s01
8us$ prim>ily01 8all or sub/anti,y all01
8co/ ( an automobile01 8l1se co/s01
8total availa# "ds0 & 8employ$        #c
                ,summ>y              c#a
pr9cip,y 9 sell+ or l1s+ automobiles04
,f9,y1 examples ( h[ 6calculate am.ts
6be 9clud$ 9 9come 9 v>i\s situ,ns >e
set \ &! report+ require;ts >e 4cuss$4
  ,! topics ( ? bullet9 >e 4cuss$ "u !
foll[+ h1d+s3

                               ,p>agraph
,automobile ,b5efit ,ov]view """""""" #a
,def9i;ns """"""""""""""""""""""""" #b-d
,p]sonal ,use """"""""""""""""""""""" #e
,automobile ,op]at+ ,exp5se
  ,b5efit--,employ]'s ,vehicle """" #f-g
,automobile ,/&by ,*>ge ,b5efit "" #h-aj
,r1sona# ,/&by ,*>ge """""""""""" #aa-ac
,calcul,n ( ,b5efits """"""""""""""" #ad
,9dividuals ,employ$ 9 ,sell+ or
  ,l1s+ ,automobiles """""""""""" #ae-af
,employees & ,memb]s ( ,"pn]%ips """ #ag
,%>ehold] ,b5efit """""""""""""""""" #ah
,pool+ or ,simil> ,>range;ts """" #ai-ba


                                      #d
                ,summ>y              d#a
,automobile ,op]at+ ,exp5se
  ,b5efit--,employee's or ,"pn]'s
  ,vehicle """"""""""""""""""""""""" #bb
,o!r ,b5efits """"""""""""""""""" #bc-bd
,report+ ,require;ts """""""""""" #be-bf

          ,4cus.n & ,9t]pret,n
    
      ,automobile ,b5efit ,ov]view
    
#a4 ,=a "picul> tax,n ye>1 ! am.t 6be
  9clud$ 9 ! 9come ( an employee f ! use
  & availabil;y ( an automobile provid$
  0! employ] or a p]son relat$ 6!
  employ] is ! sum (
  7a7 ! value (! b5efit det]m9$ "u
    p>agraph #f7#a77k7 =! .op]at+ .co/s
    relat$ 6! use (! automobile 9 ! ye>
    t is n 9 3nec;n ) or 9 ! c\rse (!
    taxpay]'s (fice or employ;t1
  7b7 ! am.t t is deem$ 6be a .r1sona#
    ./&by .*>ge =! purpose ( p>agraph
    #f7#a77e71 calculat$ pursuant 6!
    provi.ns ( subsec;n #f7#b71 =!    #e
          ,4cus.n & 9t]pret,n        e#a
    a7regate numb] ( "ds 9 ! ye> !
    automobile 0 availa# 6! employee or
    6a p]son relat$ 6! employee1 &
--------------------------------------#b
  7c7 an am.t t is equival5t 6! ,,gst on
    ! /&by *>ge1 : is1 pursuant
    6p>agraph #f7#a77e4#a71 #g@3p (!
    am.t det]m9$ "u 7b71 exclud+ any tax
    prescrib$ =! purposes ( sec;n #aed
    (! ,excise ,tax ,act1
  less
  7d7 any reimburse;ts ! employee or !
    relat$ p]son makes 9 ! ye> 6!
    employ] or a p]son relat$ 6! employ]
    = b5efits o!rwise 9clud$ 9 9come =!
    /&by *>ge4
  
  ,0virtue ( subsec;n #f7#g71 ": ! co/
  (a prop]ty or s]vice is requir$
  6det]m9e ! b5efit "u p>agraph
  #f7#a77a7 7see #bc & #bd 2l7 or
  p>agraph #f7#a77e71 ! co/ is det]m9$
  )\t ref];e 6any ,,gst 9curr$ on !
  acquisi;n (! prop]ty or s]vice4     #f
          ,4cus.n & 9t]pret,n        a#b
  ,! #g@3p a4i;n describ$ 9 7c7 does n
  apply ": ! supply is z]o rat$ or
  exempt4 ,sec;n #aed (! ,excise ,tax
  ,act prescribes taxes1 duties & fees t
  >e 9 ! nature (! g5]al retail sales
  tax (a prov9ce1 fees =! transf] ( r1l
  prop]ty & taxes on a s]vice or p]sonal
  prop]ty1 = example1 an amuse;t tax or
  a tax on hotel rooms4 ,^! prov9cial
  taxes1 duties & fees >e ref]r$ 6z
  prov9cial sales taxes 7,,pst7 9 ?
  bullet94 ,9 summ>y1 9 det]m9+ !
  r1sona# /&by *>ge 9 7b7 ! co/ ( an
  automobile 9cludes ! ,,pst b1 pursuant
  6subsec;n #f7#g71 excludes ! ,,gst2
  h["e1 :5 ! equival5t 6! ,,gst 9 7c7 is
  det]m9$1 & a4$ 6! b5efit =! r1sona#
  /&by *>ge1 bo? ! ,,gst & ,,pst >e
  exclud$ f ! co/ (! automobile1
  pursuant 6subsec;n #f7#g7 & p>agraph
  #f7#a77e4#a7 respectively4


                                      #g
               ,def9i;ns             b#b
    
#b4 ,an 8automobile0 is def9$ 9 subsec;n
  #bdh7#a7 z
  7a7 a motor vehicle 7see #c 2l7 t is
    design$ or adapt$ prim>ily 6c>ry
    9dividuals on hi<ways & /reets & t
    has a s1t+ capac;y = n m ?an ! driv]
    & ei<t pass5g]s1
  b does n 9clude
  7b7 an ambul.e1
  7c7 a motor vehicle acquir$ prim>ily =
    use z a taxi1 a bus us$ 9 a busi;s (
    transport+ pass5g]s or a he>se us$ 9
    ! c\rse (a busi;s ( >rang+ or manag+
    fun]als1
  7d7 except =! purpose ( sec;n #f1 a
    motor vehicle acquir$ 6be sold1 r5t$
    or l1s$ 9 ! c\rse ( c>ry+ on a
    busi;s ( sell+1 r5t+ or l1s+ motor
    vehicles or a motor vehicle us$ =!
    purpose ( transport+ pass5g]s 9 !
    c\rse ( c>ry+ on a busi;s ( >rang+
    or manag+ fun]als1 &
                                      #h
               ,def9i;ns             c#b
  7e7 a motor vehicle (a type -monly
    call$ a van or pick-up truck or a
    simil> vehicle
    7;i7 t has a s1t+ capac;y = n m ?an
      ! driv] & #b pass5g]s & t1 9 !
      tax,n ye> 9 : x is acquir$1 is us$
      prim>ily =! transport,n ( gds or
      equip;t 9 ! c\rse ( ga9+ or
      produc+ 9come1 or
    7;ii7 ! use ( :1 9 ! tax,n ye> 9 : x
      is acquir$1 is all or sub/anti,y
      all =! transport,n ( gds1 equip;t
      or pass5g]s 9 ! c\rse ( ga9+ or
      produc+ 9come4
#c4 ,a 8motor vehicle0 is def9$ 9
  subsec;n #bdh7#a7 6m1n anautomotive
  vehicle design$ or adapt$ 6be us$ on
  hi<ways &/reets b does n 9clude
  7a7 a trolley bus1 or
  7b7 a vehicle design$ or adapt$ 6be
    op]at$ exclusively on rails4
#d4 ,a 8pass5g] vehicle0 is def9$ 9
  subsec;n #bdh7#a7 6g5],y m1n an
  automobile acquir$ af ,june #ag1    #i
               ,def9i;ns             d#b
  #aihg & an automobile l1s$ "u a l1se
  5t]$ 9to1 ext5d$ or renew$ af ,june
  #ag1 #aihg4

             ,p]sonal ,use
    
#e4 ,9 a4i;n 6:at wd obvi\sly 2 3sid]$
  use (a motor vehicle suppli$ 0an
  employ] t is n 9 3nec;n ) or 9 ! c\rse
  (! taxpay]'s (fice or employ;t1 i4e41
  p]sonal use 7e4g41 vac,n trips1
  p]sonal %opp+ trips1 etc471 s* use
  9cludes travel 2t ! employee's place (
  "w & home1 ev5 ?\< ! employee may h
  6return 6"w af regul> duty h\rs4 ,an
  excep;n o3urs1 h["e1 ": 7z requir$ 0!
  employ] or )! employ]'s p]mis.n7 !
  employee proce$s directly f home 6a
  po9t ( call o!r ?an ! employ]'s place
  ( busi;s 6: ! employee reports
  regul>ly 7e4g41 6make repairs at
  cu/om]s' premises71 or returns home f
  s* a po9t4 ,^! "picul> trips >e n
  3sid]$ 6be (a p]sonal nature4      #aj
              ,p]sonal use           e#b
  ,al1 ": privately [n$ motor vehicles
  >e prohibit$ f 5t]+ a re/rict$ >ea ":
  ! employ;t duties >e p]=m$1 &! 4t.es
  6be travell$ )9 ! re/rict$ >ea >e s* t
  a motor vehicle is nec1 ! use &
  availabil;y (! employ]'s motor vehicle
  )9 ! re/rict$ >ea is n 3sid]$ 6be =
  p]sonal use4

  ,employ]s & employees %d keep records
  on ! use (a motor vehicle s t ! total
  kilometres driv5 9 a cal5d> ye> 0an
  employee or a p]son relat$ 6! employee
  may 2 prop]ly appor;n$ 2t busi;s use &
  p]sonal use4

      ,automobile ,op]at+ ,exp5se
      ,b5efit--,employ]'s ,vehicle
    
#f4 ,p>agraph #f7#a77k7 provides a =mula
  = det]m9+ ! am.t (! automobile op]at+
  exp5se b5efit 6an employee4 ,! =mula

                                     #aa
         ,op]at+ exp5se b5efit       f#b
  is describ$ 9 ? p>agraph & 9 #g 2l4
  ,p>agraph #f7#a77k7 provides t ":
--------------------------------------#c
  7a7 a r1sona# /&by *>ge1 z 4cuss$ 9 #h
    2l1 is det]m9$ "u subp>agraph
    #f7#a77e77;i7 = an automobile 9
    calculat+ ! 9come ( an employee =a
    tax,n ye>1
  7b7 ! employ] or a p]son relat$ 6!
    employ] pays = exp5ses relat$ 6!
    op],n (! automobile 78op]at+ co/s07
    = p]iods :5 x 0 availa# =! p]sonal
    use (! employee or a p]son relat$ 6!
    employee1
  7c7 ! employee or a p]son relat$ 6!
    employee has n fully reimburs$ !
    employ] or a p]son relat$ 6! employ]
    = all op]at+ co/s attributa# 6!
    p]sonal use )9 #de "ds af ! 5d (!
    ye>1
  7d7 ! automobile is us$ prim>ily 9 !
    p]=m.e (! employee's duties (! (fice
    or employ;t 7g5],y1 ! 8us$ prim>ily0
    te/ w 2 met ": m ?an #ej@3p (!   #ab
         ,op]at+ exp5se b5efit       a#c
    4t.e travell$ 0! automobile :ile x
    is availa# 6! employee or ! relat$
    p]son is 9 ! p]=m.e (! employee's
    duties (! (fice or employ;t71 &
  7e7 ! employee notifies ! employ] 9
    writ+ 2f ! 5d (! "picul> tax,n ye> t
    ! b5efit1 =! p]iod 9 ! ye> dur+ : !
    automobile is made availa#1 is 6be
    det]m9$ "u subp>agraph
    #f7#a77k77;iv71
  ! am.t (! b5efit is ! am.t 0:
  7f7 "o-half (! /&by *>ge ref]r$ 6in
    7a7 abv1
  exce$s
  7g7 ! am.t =! op],n (! automobile
    reimburs$ 9 ! ye> or )9 #de "ds "!af
    0! employee or ! p]son relat$ 6!
    employee 6! employ] or ! p]son :o
    made ! automobile availa#4
  
  ,! b5efit det]m9$ "u p>agraph
  #f7#a77k7 is 3sid]$ 69clude ! ,,gst
  -pon5t ( t b5efit4
                                     #ac
         ,op]at+ exp5se b5efit       b#c
  8,op]at+ co/s0 9clude ! runn+ co/s
  7e4g41 gasol9e1 oil1 ma9t5.e *>ges &
  all repair exp5ses net ( 9sur.e
  proce$s7 & "s o!r co/s 7e4g41 lic5ses
  & 9sur.e74 ,op]at+ co/s d n 9clude
  9t]e/1 capital co/ all[.e = an
  automobile [n$ 0! employ]1 l1se co/s
  =a l1s$ automobile or p>k+ co/s 7see
  #bd 2l74
#g4 ,": #f7a7 to 7c7 abv apply b !
  automobile is n us$ prim>ily 9 !
  p]=m.e (! employee's duties (! (fice
  or employ;t or ! employee does n
  satisfy ! require;ts describ$ 9 #f7e71
  ! value (! b5efit "u p>agraph
  #f7#a77k7 is ! prescrib$ am.t
  multipli$ 0! numb] ( kilometres t !
  automobile 0 us$ :ile x 0 availa# =!
  p]sonal use (! employee or a p]son
  relat$ 6! employee less any
  reimburse;ts made 9 ! ye> or )9 #de
  "ds "!af4 ,! prescrib$ rate is
  curr5tly #ab c5ts p] kilometre un.s !
  9dividual is pr9cip,y employ$ 9    #ad
         ,op]at+ exp5se b5efit       c#c
  sell+ or l1s+ automobiles1 9 : case !
  prescrib$ rate is #i c5ts p]
  kilometre4

  ,p>agraph #f7#a77k7 w n apply ":1 9 !
  ye> or )9 #de "ds "!af1 ! employee or
  ! p]son relat$ 6! employee1 reimburses
  ! employ] = all am.ts relat$ 6!
  p]sonal por;n (! actual op]at+ co/s 7&
  any relat$ ,,gst & ,,pst7 (!
  automobile4

        ,automobile ,/&by ,*>ge
                ,b5efit
    
#h4 ,=! purpose ( p>agraph #f7#a77e71
  subsec;n #f7#b7 sets \ a =mula 7see
  #aa 2l7 = det]m9+ ! am.t (a r1sona#
  /&by *>ge = an automobile =! a7regate
  numb] ( "ds t ! employ] makes x
  availa# 6an employee dur+ ! p]iod 9 !
  ye> t ! employ] [n$ or l1s$ x4 ,9
  g5]al1 ": an employee drives an av]age
  ( at l1/ #a1jjj p]sonal-use        #ae
         ,automobile /&by *>ge       d#c
  kilometres p] mon? 9 a tax,n ye>1 !
  /&by *>ge is a maximum ( #b@3p p] mon?
  (! co/ 7see #ab 2l7 (! automobile1 or
  two-?irds (! l1se co/s 7see #ac 2l7 if
  l1s$1 =! numb] ( "ds 9 ! ye> t !
  automobile 0 availa# 6! employee4 ,":
  an employee drives an av]age ( few]
  ?an #a1jjj p]sonal-use kilometres p]
  mon? 9 a tax,n ye> &
  7a7 ! employee is requir$ 0! employ]
    6use ! automobile 9 3nec;n )1 or 9 !
    c\rse (1 ! (fice or employ;t1 &
  7b7 8all or sub/anti,y all0 (! 4t.e
    travell$ 0! automobile dur+ ! "ds 9
    ! ye> t x is availa# 6! employee is
    9 3nec;n )1 or 9 ! c\rse (1 ! (fice
    or employ;t1
  
  ! =mula provides a reduc$ /&by *>ge
  7see ,example ,,ii 2l7 t is equal 6!
  am.t obta9$ :5 ! 8g5]al0 /&by *>ge
  4cuss$ abv is multipli$ 0! propor;n t
  ! actual p]sonal-use kilometres >e (
                                     #af
         ,automobile /&by *>ge       e#c
  #a1jjj = ea* #cj "ds ! automobile is
  availa# 9 ! ye>4

  ,) respect 6! 8all or sub/anti,y all0
  te/ 9 7b7 abv1 ! ,de"p;t 3sid]s t ?
  te/ is met ": #ij@3p (! 4t.e travell$
  0! automobile dur+ ! availa# "ds 0 9
  3nec;n )1 or 9 ! c\rse (1 ! (fice or
  employ;t4

  ,z us$ 9 ? p>agraph1 except 9 7a7 abv1
  ! ^w 8employee0 9cludes a p]son relat$
  6! employee &! ^w 8employ]0 9cludes a
  p]son relat$ 6! employ]4
#i4 ,": ! calcul,n (a reduc$ /&by *>ge
  is made =a tax,n ye> = an employee1 on
  ! basis ( p]sonal use 0! employee 7or
  a p]son relat$ 6! employee7 ( less ?an
  an av]age ( #a1jjj kilometres = ea*
  #cj "ds ( availabil;y1 ! employ] or
  employee %d keep records (! "ds 9 !
  ye> ! automobile 0 availa# &! p]sonal-
  use kilometres driv5 dur+ ^? "ds4 ,!
  employ] %d 2 satisfi$ t !          #ag
         ,automobile /&by *>ge       f#c
  p]sonal-use kilometres dcld 0!
  employee &! busi;s-use kilometres
  equals ! total kilometres ! automobile
  has be5 driv5 dur+ ! ye>4
#aj4 ,hav+ calculat$ ! am.t t is a
  r1sona# /&by *>ge "u subsec;n #f7#b71
  p>agraph #f7#a77e7 br+s 96! employee's
  9come ! am.t 0: ! /&by *>ge exce$s !
  total (! am.ts ! employee1 or a p]son
--------------------------------------#d
  relat$ 6! employee1 has pd 6! employ]1
  or a p]son relat$ 6! employ]1 =! use
  (! automobile 7o!r ?an am.ts pd =!
  op]at+ co/s (! automobile74 ,am.ts pd
  6! employ]1 or a p]son relat$ 6!
  employ]1 =! use (! automobile may
  9clude flat-rate mon?ly *>ges & p]-
  kilometre *>ges4 ,a reimburse;t
  9cludes an am.t )held f an employee's
  sal>y 6reimburse ! employ] =! p]sonal
  use ( an automobile b a reduc;n 9
  sal>y is n a reimburse;t4

                                     #ah
          ,r1sona# ,/&by ,*>ge       a#d
    
#aa4 ,! subsec;n #f7#b7 =mula = det]m9+
  ! r1sona# /&by *>ge ref]r$ 6in #h abv
  is

  ;,a divid$ 0;,b multipli$ by ,7#b@3p
  multipli$ by 7;,c multipli$ by ;,d7
  plus two-?irds mulitpli$ by 7;,e m9us
  ;,f7

  ":
  ;,a is ! less] (
    7a7 ! total numb] ( kilometres t !
      automobile is driv5 7o!rwise ?an 9
      3nec;n ) or 9 ! c\rse (!
      employee's (fice or employ;t7 dur+
      ! 8total availa# "ds0 7see 2l 9 ?
      p>agraph71 &
    7b7 ! value det]m9$ = ;,b 2l
    
  except t ! am.t det]m9$ "u 7a7 abv % 2
  deem$ 6be equal 6! am.t det]m9$ "u 7b7
  abv un.s
                                     #ai
           ,r1sona# /&by *>ge        b#d
    7c7 ! employee is requir$ 0! employ]
      or a p]son relat$ 6! employ] 6use
      ! automobile 9 3nec;n ) or 9 !
      c\rse (! (fice or employ;t1 &
    7d7 all or sub/anti,y all (! 4t.e
      travell$ 0! automobile 9 ! 8total
      availa# "ds0 is 9 3nec;n ) or 9 !
      c\rse (! (fice or employ;t2
  ;,b is ! product obta9$ :5 #a1jjj is
    multipli$ 0! quoti5t obta9$ 0divid+
    ! 8total availa# "ds0 0#cj &1 if !
    quoti5t s obta9$ is n a :ole numb] &
    m ?an "o1 0r.d+ x 6! ne>e/ :ole
    numb] or1 ": t quoti5t is equidi/ant
    f two 3secutive :ole numb]s1 0r.d+ x
    6! l[] (! two numb]s2
  ;,c is ! co/ (! automobile 6! employ]
    or a p]son relat$ 6! employ] ": !
    employ] or ! relat$ p]son [ns !
    automobile at any "t 9 ! ye>2
  ;,d is ! numb] obta9$ 0divid+ s* (!
    8total availa# "ds0 z >e "ds t !
    employ] or ! relat$ p]son [ns !
    automobile 0#cj &1 if !          #bj
           ,r1sona# /&by *>ge        c#d
    quoti5t s obta9$ is n a :ole numb] &
    is m ?an "o1 0r.d+ x 6! ne>e/ :ole
    numb] or1 ": t quoti5t is equidi/ant
    f two 3secutive :ole numb]s1 0r.d+ x
    6! l[] (! two numb]s2
  ;,e is ! total ( all am.ts t may
    r1sonably 2 reg>d$ z hav+ be5 paya#
    0! employ] or a p]son relat$ 6!
    employ] 6a lessor =! purpose ( l1s+
    ! automobile dur+ s* (! 8total
    availa# "ds0 z >e "ds :5 !
    automobile is l1s$ 6! employ] or !
    relat$ p]son2 &
  ;,f is ! "p (! am.t det]m9$ = ;,e abv
    t may r1sonably 2 reg>d$ z hav+ be5
    paya# 6! lessor 9 respect ( all or
    "p (! co/ 6! lessor ( 9sur+ ag/
    7a7 loss (1 or damage to1 !
      automobile1 or
    7b7 liabil;y result+ f ! use or
      op],n (! automobile4
  ,! t]m 8total availa# "ds0 us$ abv 9 !
  =mula ref]s 6! total numb] ( "ds 9 !
  tax,n ye> dur+ : an automobile     #ba
           ,r1sona# /&by *>ge        d#d
  is made availa# 6an employee1 or 6a
  p]son relat$ 6! employee1 0! employ]1
  or 0a p]son relat$ 6! employ]4 ,!
  total numb] ( "ds 9cludes ! f/ "d dur+
  : ! automobile is s made availa# & ea*
  "d "!af until s* "t z ! employee is
  requir$ 0! employ] 6return !
  automobile &! 3trol ov] xs use 6!
  employ] or a p]son relat$ 6! employ]4
  ,an automobile is availa# 6! employee
  if x is us$ 0! employee all "d or =
  any "p (! "d or ev5 if ! automobile
  sits unus$ 9 ! employee's g>age or on
  ! employee's driveway or p>k+ spot4
#ab4 ,! co/ ( an automobile 6a p]son :o
  is an employ]1 or a p]son relat$ 6!
  employ]1 =! purpose (! calcul,ns "u
  subsec;ns #f7#b7 7see #h abv & ;,c (
  #aa abv7 & #f7#b.a7 7see #ae7b7 2l7 is
  ! co/ 6t p]son1 9clud+ prov9cial sales
  tax1 not)/&+ t ! capital co/ on : !
  p]son may claim capital co/ all[.e may
  2 reduc$ "u sec;n #fg 6a r1sona# am.t1
  or may1 if ! automobile is a       #bb
           ,r1sona# /&by *>ge        e#d
  pass5g] vehicle1 2 limit$ "u p>agraph
  #ac7#g77g7 or 7h7 6a maximum (
  4#bj1jjj or s* o!r am.t z may 2
  prescrib$4 ,! co/ ( equip;t 7e4g41
  radio rcvg & radio transmis.n equip;t7
  requir$ =! purpose (! busi;s op],n is
  n 3sid]$ "p (! co/ (! automobile4
  ,subsec;n #gcjg7#a7 (! ,9come ,tax
  ,regul,ns prescribes ! am.ts =
  p>agraphs #ac7#g77g7 & 7h71 am;g o!rs4
#ac4 ,subsec;n #f7#b7 7see .;,e ( #aa
  abv7 3ta9s ! expres.n 8am.ts ''' paya#
  0! employ] ''' 6a lessor =! purpose (
  l1s+ ! automobile04 ,^! am.ts 7ref]r$
  6z 8l1se co/s07 ref] 6am.ts 7o!r ?an
  =! co/ ( 9sur.e--see .;,f ( #aa abv7 t
  ! employ] or a p]son relat$ 6! employ]
  is requir$ 6pay 6! lessor1 9clud+
  7a7 kilometre *>ges1
  7b7 any *>ges = repairs & ma9t5.e1
  7c7 prov9cial sales tax1 &
--------------------------------------#e
  7d7 8t]m9al *>ges0 7i4e41 am.ts *>g$
    at ! 5d (a l1se t]m7 less        #bc
           ,r1sona# /&by *>ge        a#e
    8t]m9al cr$its0 7i4e41 am.ts cr$it$
    at ! 5d (a l1se t]m71
  
  not)/&+ t ! am.t deducti# 0! employ]
  or a p]son relat$ 6! employ] may 2
  limit$ "u sec;n #fg.c 6a mon?ly
  maximum ( 4#fjj1 or s* o!r am.t z may
  2 prescrib$4

  ,subsec;n #gcjg7#c7 (! ,regul,ns
  prescribes ! am.ts =! purposes ( sec;n
  #fg.c4 ,if "! >e t]m9al *>ges & cr$its
  &! employee7s7 & employ] agree1 !
  taxa# b5efit >is+ f ! l1se pay;ts w 2
  adju/$ ov] ! t]m (! l1se provid$ t n"o
  (! relevant ye>s >e /atute-b>r$4 ,": a
  sub/antial l1se pay;t is made at !
  2g9n+ (! l1se result+ 9 l[] mon?ly
  l1se pay;ts1 a pro-rata %>e (! 9itial
  pay;t m/ 2 a4$ 6ea* mon?ly pay;t ov] !
  t]m (! l1se 6det]m9e ! taxa# b5efit
  6an employee1 provid$ ! pay;t is 9
  fact a l1se pay;t & n a pay;t =!
  pur*ase (! automobile4 ,!          #bd
           ,r1sona# /&by *>ge        b#e
  expres.n 8sub/antial l1se pay;t0 is n
  9t5d$ 6cov] ! usual -m]cial prepay;ts
  s* z ! f/ & la/ mon? r5tal am.ts4

          ,calcul,n ( ,b5efits
    
#ad4 ,! foll[+ examples illu/rate h[
  6calculate ! op]at+ co/s b5efit "u
  p>agraph #f7#a77k71 ! /&by *>ge "u
  p>agraph #f7#a77e7 &! ,,gst equival5t
  on ! /&by *>ge "u p>agraph
  #f7#a77e4#a7 = #aiid4 ,9 a4i;n 6!
  specific assump;ns 9 ea* example x is
  al assum$ t ! employee is requir$ 0!
  employ] 6use ! automobile & t !
  employ] is pay+ = all (! op]at+
  exp5ses (! automobile4






                                     #be
              ,example ;,i           c#e
    
,employ]-[n$ automobile
,assump;ns3
,co/ 6employ] ( automobile1
  9clud+ 4#a1jjj ( ,,pst b
  exclud+ ,,gst """"""""""""""" 4#ae1jjj
,numb] ( "ds automobile 0
  availa# 6employee """"""""""""""" #cfe
,total kilometres driv5 9 ! ye>  #bd1jjj
,p]sonal-use kilometres driv5 9
  ! ye> """"""""""""""""""""""""" #h1jjj
,reimburse;t 0employee = use (
  automobile """"""""""""""""""" 4#a1hjj
,p>agraph #f7#a77k7 b5efit =!
  op]at+ exp5ses3 #h1jjj km
  multipli$ 04#ab p] km """""""""" 4#ifj
,p>agraph #f7#a77e7 /&by *>ge3
  #ab1jjj 7#a7 divid$ 0#ab1jjj
  multipli$ by ,7#b@3p multipli$
  by 7#ae1jjj multipli$
  0#ab 7#b77 plus #j 7#c77' """" 4#c1fjj
,,gst equival5t on /&by *>ge "u
  p>agraph #f7#a77e4#a73 #g@3p
  multipli$ by 7#ab1jjj divid$       #bf
              ,example ;,i           d#e
  0#ab1jjj multipli$ by 7#b@3p
  multipli$ by ,77#ae1jjj m9us
  #a1jjj7 7#d7 multipli$
  0#ab 7#b77'7 plus #j 7#c77 """"" 4#bce
,total b5efits "u p>agraphs
  #f7#a77k71 7e7 & 7e4#a7 """""" 4#d1gie
,less reimburse;t = use (
  automobile """"""""""""""""""" 4#a1hjj
,am.t ( automobile b5efit 6be
  report$ & 9clud$ 9 9come 7#e7  4#b1iie

7#a7 ,s9ce ! busi;s-use kilometres >e n
  at l1/ #ij@3p (! total kilometres1 !
  num]ator is deem$ 6be equal 6!
  denom9ator 7see .,a7d7 ( #aa abv74
7#b7 ,? numb] _c exce$ #ab & repres5ts !
  frac;n #cfe divid$ 0#cj r.d$ 6! ne>e/
  :ole numb] 7see .;,d ( #aa abv74
7#c7 ,s9ce "! is no l1se1 ! latt] "p
  7i4e410 plus two-?irds multipli$ by
  7;,e m9us ;,f707 (! =mula ref]r$ 6in
  #aa abv c 2 ignor$4
7#d7 ,! ,,pst is exclud$ 9 calculat+ !
  ,,gst equival5t on ! b5efit        #bg
              ,example ;,i           e#e
  pursuant 6subp>agraph
  #f7#a77e4#a77;ii74
7#e7 ,! alt]native calcul,n (!
  automobile b5efit wd 2
  --"o-half ( 4#c1fjj 7see #f
    abv7 """"""""""""""""""""""" 4#a1hjj
  --/&by *>ge & """""""""""""""" 4#c1fjj
  --#g@3p ,,gst equival5t on !
    /&by *>ge--z calculat$ abv """ 4#bce
  --total b5efits "u p>agraphs
    #f7#a77e71 7e4#a7 & 7k71
    less """"""""""""""""""""""" 4#e1fce
  --reimburse;t = use (!
    automobile """"""""""""""""" 4#a1hjj
  --am.t 6be report$ 9 9come """ 4#c1hce
  







                                     #bh
             ,example ,,ii           f#e
    
,employ]-[n$ automobile
,assump;ns3
,employ] requires employee 6use
  automobile = employ;t
  purposes
,co/ 6employ] ( automobile1
  9clud+ 4#a1ejj ( ,,pst b
  exclud+ ,,gst """"""""""""""" 4#bj1jjj
,numb] ( "ds automobile 0
  availa# 6employee """"""""""""""" #cfe
,total kilometres driv5 9 ! ye>  #dj1jjj
,p]sonal-use kilometres driv5 9
  ! ye> """"""""""""""""""""""""" #b1jjj
,reimburse;t 0employee = use (
  automobile """"""""""""""""""""" 4#cjj
,p>agraph #f7#a77k7 b5efit =!
  op]at+ exp5ses3 #b1jjj km
  multipli$ 04#ab p] km """""""""" 4#bdj
,p>agraph #f7#a77e7 /&by *>ge3
  #b1jjj 7#a7 divid$ 0#ab
  multipli$ by ,7#b@3p
  multipli$ by 7#bj1jjj
                                     #bi
             ,example ,,ii           g#e
  multipli$ 0#ab 7#b77 plus
  #j 7#c77 """"""""""""""""""""""" 4#hjj
,,gst equival5t on /&by *>ge "u
  p>agraph #f7#a77e4#a73
#g@3p multipli$ by 7#b1jjj
  divid$ 0#ab1jjj multipli$ by
  7#b@3p multipli$ by
  ,77#bj1jjj m9us #a1ejj7 7#d7
  multipli$ 0#ab 7#b77'7 plus
  #j 7#c777 """"""""""""""""""""""" 4#eb
,total b5efits "u p>agraphs
  #f7#a77k71 7e7 & 7e4#a7 """""" 4#a1jib
,less reimburse;t = use (
  automobile """"""""""""""""""""" 4#cjj
,am.t ( automobile b5efit 6be
  report$ & 9clud$ 9 9come """"""" 4#gib

7#a7 ,s9ce ! busi;s-use kilometres >e at
  l1/ #ij@3p (! total kilometres1 & s9ce
  ! employee is requir$ 6use !
  automobile 9 3nec;n ) or 9 ! c\rse (!
  (fice or employ;t1 ! /&by *>ge is
  reduc$ 7see #h abv74
                                     #cj
             ,example ,,ii           h#e
7#b7 ,? numb] _c exce$ #ab & repres5ts !
  frac;n #cfe divid$ 0#cj r.d$ 6! ne>e/
  :ole numb] 7see ;,d ( #aa abv74
7#c7 ,s9ce "! is no l1se1 ! latt] "p
  7i4e410 plus two-?irds multipli$ by
  7;,e m9us ,f707 (! =mula ref]r$ 6in
  #aa abv c 2 ignor$4
7#d7 ,! ,,pst is exclud$ 9 calculat+ !
  ,,gst equival5t on ! b5efit pursuant
  6subp>agraph #f7#a77e4#a77;ii74
--------------------------------------#f
             ,example ,,iii
    
,employ]-l1s$ automobile
,assump;ns3
,l1se co/s ( automobile =! ye>1
  9clud+ ,,pst ( 4#ijj b exclud+
  ,,gst """""""""""""""""""""""" 4#h1hjj
,9sur.e co/s 9clud$ 9 ! 4#h1hjj  4#a1jjj
,numb] ( "ds automobile 0
  availa# 6employee """"""""""""""" #cfe
,total kilometres driv5 9 ! ye>  #bd1jjj

                                     #ca
             ,example ,,iii          a#f
,p]sonal-use kilometres driv5 9
  ! ye> """"""""""""""""""""""""" #h1jjj
,reimburse;t 0employee = use (
  automobile """"""""""""""""""" 4#a1hjj
,p>agraph #f7#a77k7 b5efit =!
  op]at+ exp5ses3 #h1jjj km at
  4#.ab p] km """""""""""""""""""" 4#ifj
,p>agraph #f7#a77e7 /&by *>ge3
  #ab1jjj 7#a7 divid$ 0#ab1jjj
  multipli$ by ,7#j 7#b7 plus
  two-?irds multipli$ by 7#h1hjj
  m9us #a1jjj 7#c777' """""""""" 4#e1bjj
,,gst equival5t on /&by *>ge "u
  p>agraph #f7#a77e4#a73 #g@3p
  multipli$ by 7#ab1jjj 7#a7
  divid$ 0#ab1jjj multipli$ by
  7#j 7#b7 plus two-?irds
  multipli$ by ,7#h1hjj m9us
  7#a1jjj 7#c7 plus
  #ijj 7#d777'77 """"""""""""""""" 4#cbb
,total b5efits "u p>agraphs
  #f7#a77k71 7e7 & 7e4#a7 """""" 4#f1dhb

                                     #cb
             ,example ,,iii          b#f
,less reimburse;t = use (
  automobile """"""""""""""""""" 4#a1hjj
,am.t ( automobile b5efit 6be
  report$ & 9clud$ 9 9come """"" 4#d1fhb

7#a7 ,s9ce ! busi;s-use kilometres >e n
  at l1/ #ij@3p (! total kilometres1 !
  num]ator is deem$ 6be equal 6!
  denom9ator 7see ,a7d7 ( #aa abv74
7#b7 ,s9ce ! employ] did n [n !
  automobile at any "t 9 ! ye>1 ! mi4le
  "p 7i4e41 8#b@3p multipli$ by 7;,c
  multipli$ by ;,d707 (! =mula ref]r$
  6in #aa abv c 2 ignor$4
7#c7 ,z not$ 9 #f abv1 9sur.e is view$ z
  an op]at+ co/4
7#d7 ,! ,,pst is exclud$ 9 calculat+ !
  ,,gst equival5t on ! b5efit pursuant
  6subp>agraph #f7#a77e4#a77;ii74




                                     #cc
         ,9dividuals ,employ$ 9      c#f
      ,sell+ or ,l1s+ ,automobiles
    
#ae4 ,": an 9dividual is employ$
  pr9cip,y 9 sell+ or l1s+ automobiles1
  subsec;n #f7#b.a7 provides two *anges
  9 ! calcul,n (a /&by *>ge =a "picul>
  tax,n ye> ": an automobile [n$ 0an
  employ] is made availa# 0! employ] 6!
  employee1 or 6a p]son relat$ 6!
  employee1 &! employ] has acquir$ "o or
  m automobiles 9 ! ye>4 ,at ! op;n (!
  employ]1 ! /&by *>ge may 2 calculat$
  pursuant 6subsec;n #f7#b7 )! foll[+
  *anges3
  7a7 ! ref];e 9 ! subsec;n #f7#b7 =mula
    to 8#b@3p0 is r1d z 8"o & "o-half
    p]c5t01 &
  7b7 ! co/ (! automobile 7see ;,c ( #aa
    abv7 6! employ] is ! grt] (
    7;i7 ! av]age co/ ( all new
      automobiles acquir$ 9 ! ye> = sale
      or l1se 9 ! c\rse (! employ]'s
      busi;s1 &
                                     #cd
          ,9dividuals employ$        d#f
    7;ii7 ! av]age co/ ( all automobiles
      acquir$ 9 ! ye> = sale or l1se 9 !
      c\rse (! employ]'s busi;s4
#af4 ,x is a "q ( fact :e!r an 9dividual
  is 8employ$ pr9cip,y 9 sell+ or l1s+
  automobiles04 ,usu,y an 9dividual wd 2
  3sid]$ 6be s employ$ :5 mo/ (!
  9dividual's "t & ef=t 0 sp5t directly
  9 sell+ or l1s+ automobiles4
  ,employees 9 manag]ial posi;ns 7e4g41
  g5]al manag]s & sales manag]s7 may 2
  eligi# = subsec;n #f7#b.a7 tr1t;t if
  !y meet ! pr9cipal employ;t crit]ion
  describ$ abv4 ,h["e1 s5ior executives
  :o >e1 =! mo/ "p1 5gag$ 9 ! adm9i/r,n
  (! busi;s d n meet ? crit]ion4 ,"ps
  manag]s1 s]vice manag]s & simil>
  employees >e n usu,y eligi# = subsec;n
  #f7#b.a7 tr1t;t1 =! same r1son4 ,":
  subsec;n #f7#b.a7 does n apply1
  subsec;n #f7#b7 applies 6! calcul,n (!
  r1sona# /&by *>ge ref]r$ 6in p>agraph
  #f7#a77e74
                                     #ce
         ,employees & ,memb]s (      e#f
               ,"pn]%ips
    
#ag4 ,p>agraph #ab7#a77y7 provides t ":
  a taxpay] is an 9dividual :o is a
  memb] (a "pn]%ip1 or an employee (a
  memb] (a "pn]%ip1 &! "pn]%ip makes an
  automobile availa# 9 ! ye> 6! taxpay]
  or 6a p]son relat$ 6! taxpay]1 !
  taxpay] m/ 9clude 9 9come an am.t t wd
  2 9clud$ 9 9come "u p>agraphs
  #f7#a77e7 & 7e4#a7 7z x relates 6!
  /&by *>ge7 z if ! taxpay] 7 an
  employee (! "pn]%ip4

           ,%>ehold] ,b5efit
    
#ah4 ,! abv guidel9es may g5],y 2 appli$
  6a %>ehold] (a corpor,n4 ,subsec;n
  #ae7#e7 provides t1 =! purpose (
  subsec;n #ae7#a71 ! value (! b5efit
  6be 9clud$ 9 a %>ehold]'s 9come :5 an
  automobile is made availa# 6s* a p]son
  7or 6a p]son relat$ 6t p]son7 0a
  corpor,n1 :e!r or n resid5t or     #cf
            ,%>ehold] b5efit         f#f
  c>ry+ on busi;s 9 ,canada1 is
  calculat$ on ! assump;n t subsec;ns
  #f7#a71 7#a.a7 & 7#b7 apply ) s*
  modific,ns z >e requir$ 9 !
  circum/.es1 & z ?\< ! ref];es "!9 to
  8employ]0 7 r1d z ref];es to
  8corpor,n04

  ,0virtue ( subsec;n #ae7#a.c71 ": !
  co/ (a prop]ty or s]vice is requir$ =!
  purpose ( det]m9+ ! b5efit "u subsec;n
  #ae7#a71 ! co/ is det]m9$ )\t ref];e
  6any ,,gst 9curr$ on ! acquisi;n (!
  prop]ty or s]vice4

  ,": a %>ehold] is al an employee & an
  automobile is made availa# 6! %>ehold]
  7or 6a p]son relat$ 6! %>ehold]7 9 !
  capac;y ( an employee1 ! b5efit is
  9clud$ 9 9come "u sec;n #f z 9come f
  employ;t1 r ?an "u sec;n #ae z a
  b5efit 3f]r$ on a %>ehold]4

                                     #cg
      ,pool+ or ,simil> ,>range;ts    #g
    
#ai4 ,an employee may h di6]5t
  automobiles availa# = p]sonal use dur+
  a "picul> ye> \ (a l>ge fleet [n$ or
  l1s$ 0! employ]4 ,op]at+ co/s 7see #f
  abv7 =a fleet ( automobiles may n 2
  pool$ or av]ag$ =! purpose ( det]m9+ !
  p>agraph #f7#a77k7 b5efit ref]r$ 6in
  #a7a7 abv4 ,! op]at+ co/s t apply
  6p]sonal use ( an automobile m/ 2
  calculat$ & attribut$ 6! specific
  employees on ! basis (! actual p]sonal
  use made (! employ]'s automobiles4
  ,h["e1 ": an employ] self-9sures l1s$
  automobiles & pays = co/s t wd o!rwise
  2 pd "u 9sur.e claims 7e4g41 ! co/ (
  repair+ a damag$ l1s$ automobile or a
  ?ird "py's vehicle71 s* co/s repres5t
  op]at+ co/s (! employ]'s fleet ( l1s$
  automobiles & may 2 av]ag$ ov] all !
  driv]s ( ^? automobiles =! purpose (
  det]m9+ ! taxa# b5efit >is+ f !
  employ]'s pay;t4 ,! alt]native me?od
  4cuss$ 9 #g abv ( calculat+ !      #ch
            ,pool+ or simil>         a#g
  p>agraph #f7#a77k7 b5efit is availa#
  not)/&+ t ! /&by *>ge may h be5
  calculat$ us+ an av]ag+ me?od z 4cuss$
  2l4
#bj4 ,ord9>ily1 ! /&by *>ge =! di6]5t
  automobiles is det]m9$ =! p]iod t ea*
  is made availa# 6! employee or a p]son
  relat$ 6! employee4 ,h["e1 ": !
  employ] & employee agree1 &! employee
  is n assign$ an automobile on a l;g-
  t]m or exclusive-use basis1 ! foll[+
  av]ag+ me?od is a3epta# =! purpose (
  det]m9+ ! /&by *>ge3
  7a7 =! purpose ( ;,c 9 #aa abv 7! co/
    ( pur*as$ automobiles71 all
    automobiles made availa# 6! employee
    or a p]son relat$ 6! employee at any
    "t dur+ ! cal5d> ye> >e gr\p$
    96pur*ase-co/ doll> ranges n exce$+
    4#e1jjj &! av]age co/ = automobiles
    9 ea* range is det]m9$2
  7b7 =! purpose ( ;,e 9 #aa abv 7am.t
    paya# = l1s$ automobiles71 all l1s$
    automobiles made availa# 6!      #ci
            ,pool+ or simil>         b#g
    employee or a p]son relat$ 6!
    employee at any "t dur+ ! cal5d> ye>
    >e gr\p$ 96l1se-co/ doll> ranges n
    exce$+ 4#a1bjj1 on ! assump;n t ea*
    automobile has be5 l1s$ =! :ole ye>4
    ,! av]age l1se co/ = automobiles 9
    ea* range is det]m9$ &! wei<t$-
    av]age l1se co/ = all ranges is
    det]m9$2
  7c7 ! co/ ( pur*ase or l1se co/ 6!
    employ] ( ea* automobile made
    availa# =! p]sonal use (! employee
    or a p]son relat$ 6! employee f a
    price range is 3sid]$ 6be ! av]age
    co/ ( pur*ase or av]age l1se co/ =
    all automobiles ( t range2 &
  7d7 once ! av]age co/ ( pur*ase or
    wei<t$-av]age l1se co/ ( an
    automobile is det]m9$1 ! employee's
    /&by *>ge =! use ( automobiles f ea*
    price range is calculat$ 9 ! usual
    mann] pursuant 6subsec;n #f7#b7 &
    p>agraph #f7#a77e74
                                     #dj
            ,pool+ or simil>         c#g
#ba4 ,=! purpose ( calculat+ ! /&by
  *>ge1 ,example ,,iv 2l illu/rates !
  av]age me?od = automobiles [n$ 0!
  employ] & ,example ;,v 2l illu/rates !
  av]age me?od = automobiles l1s$ 0!
  employ]4

             ,example ,,iv
    
,assump;ns3 ,f ! foll[+ pur*ase-co/
  doll> ranges =! employ]'s fleet (
  automobiles1 an employee has ^!
  availa# = p]sonal use3
  7a7 automobiles f ! 4#ab1jjj-4#af1iii
    range = ?ree mon?s (! ye>
  7b7 automobiles f ! 4#ag1jjj-4#ba1iii
    range =! rema9d] (! ye> &
  7c7 ,,pst is 9clud$ 9 ! pur*ase price
    b ,,gst is exclud$4
,pur*ase "" ,pur*ase ,co/ ,ranges
,co/ """""" 4#ab1jjj-   4#ag1jjj-
4#af1iii "" 4#ba1iii
4#ab1fjj """""""""""""" 4#ab1fjj
4#bj1jjj """""""""""""" 4#bj1jjj     #da
             ,example ,,iv           d#g
4#ba1hjj """""""""""""" 4#ba1hjj
4#ag1hjj """""""""""""" 4#ag1hjj
4#ab1hjj """""""""""""" 4#ab1hjj
4#ad1ijj "" 4#ad1ijj
4#af1jjj "" 4#af1jjj
4#ag1ejj """""""""""""" 4#ag1ejj
4#ae1fjj "" 4#ae1fjj
4#ba1jjj """""""""""""" 4#ba1jjj
            4#ga1ijj "" 4#ih1ajj
,av]age
,pur*ase
,co/ """""" 4#ad1chj "" 4#ai1fbj

,/&by ,*>ge3
7a7 automobiles 9 ! 4#ab1jjj-
  4#af1iii range = ?ree mon?s3
  #c1jjj 7#a7 divid$ 0#c1jjj
  multipli$ by ,7#b@3p 7#b7





                                     #db
             ,example ,,iv           e#g
  multipli$ by 74#ad1chj
  multipli$ 0#c 7#c777' """""""""" 4#hfc
7b7 automobiles 9 ! 4#ag1jjj-
  4#ba1iii range = n9e mon?s3
  #i1jjj 7#a7 divid$ 0#i1jjj
  multipli$ by ,7#b@3p 7#b7
  multipli$ by 74#ai1fbj
  multipli$ 0#i 7#c777' """""""" 4#c1ecb
,total ,/&by ,*>ge 7#d7 """""""" 4#d1cie

7#a7 ,assumes t less ?an #ij@3p (! 4t.e
  travell$ dur+ ! availa# "ds 0 9 3nec;n
  )! employee's employ;t4
7#b7 ,assumes t ! employee 0 n 5gag$ 9
  sell+ or l1s+ automobiles4
7#c7 ,assumes t employ] [n$ !
  automobiles 9 ea* range only =! p]iod
  ( "t ! automobiles 9 t range 7 us$ 0!
  employee4
7#d7 ,? is -p>a# 6! am.t id5tifi$ z !
  8,p>agraph #f7#a77e7 /&by *>ge0 9 #ad
  abv1 ,example ;,i4

                                     #dc
              ,example ;,v            #h
    
,assump;ns3 ,f ! foll[+ l1se-co/ doll>
  ranges =! employ]'s fleet (
  automobiles1 an employee has ^!
  availa# = p]sonal use3
  7a7 automobiles f ! 4#c1jjj-4#d1aii
    range = #abj "ds (! ye>
  7b7 automobiles f ! 4#d1bjj-4#e1cii
    range =! rema9+ #bde "ds (! ye> &
  7c7 ,,pst is 9clud$ 9 ! l1se co/ b
    ,,gst is exclud$4
,ye>ly 7#a7
,l1se """""" ,l1se ,co/ ,ranges
,co/ "" 4#c1jjj-4#d1aii 4#d1bjj-4#e1cii
4#c1jdj """ 4#c1jdj
4#c1jej """ 4#c1jej
4#d1djj """"""""""""""""""" 4#d1djj
4#d1ijj """"""""""""""""""" 4#d1ijj
4#c1jjj """ 4#c1jjj
4#c1aej """ 4#c1aej
4#c1aaj """ 4#c1aaj
4#d1gjj """"""""""""""""""" 4#d1gjj
4#d1fjj """"""""""""""""""" 4#d1fjj
                                     #dd
              ,example ;,v           a#h
 """"""""" 4#ae1cej """""" 4#ah1fjj
,av]age
l1se co/
p] range "" 4#c1jgj """"""" 4#d1fej

,wei<t$ av]age l1se co/ calcul,n
  ,774#c1jgj multipli$ 0#abj7
  plus 74#d1fej multipli$
  0#bde77' divid$ 0#cfe """""""" 4#d1aca
,/&by ,*>ge 7#b7 7assum+
  p]sonal-use kilometres >e at
  l1/ #a1jjj p] mon?7
  #ab1jjj divid$ 0#ab1jjj
  multipli$ by ,7#b multipli$
  by 74#d1aca m9us #j77' divid$
  0#c7 """"""""""""""""""""""""" 4#b1ged

7#a7 ,! l1se co/s >e net ( 9h]5t 9sur.e
  co/s 7see ;,f ( #aa abv71 : is ! r1son
  =! z]o 9 ! abv calcul,n4
7#b7 ,? is -p>a# 6! am.t id5tifi$ z !
  8,p>agraph #f7#a77e7 /&by *>ge0 9 #ad
  abv1 ,example ,,iii4
                                     #de
      ,automobile ,op]at+ ,exp5se    b#h
        ,b5efit--,employee's or
            ,"pn]'s ,vehicle
    
#bb4 ,p>agraph #f7#a77l7 9cludes 9 9come
  ! value ( any b5efit rcvd 0an employee
  ": ! employ] pays ! op]at+ co/s
  79clud+ bo? ,,pst & ,,gst7 ( an
  employee's automobile or ": a "pn]%ip
  pays ! op]at+ co/s ( an automobile
  suppli$ 0a "pn] 6! "pn]'s employee4 ,!
  value (! b5efit is calculat$ 0det]m9+
  ! ratio (! p]sonal use kilometres 6!
  total kilometres multipli$ 0! op]at+
  co/s (! vehicle pd 0! employ] or
  "pn]%ip4 ,! b5efit is reduc$ 0! am.t (
  any reimburse;t made 0! employee 6!
  employ] or "pn]%ip4

             ,o!r ,b5efits
    
#bc4 ,motor vehicles s* z trucks1 buses1
  motor homes1 etc41 : >e n 9clud$ 9 !
  def9i;n ( 8automobile0 7see #b abv7 =!
  purposes ( p>agraph #f7#a77e7 or   #df
              ,o!r b5efits           c#h
  #f7#a77k71 may al 2 subject 6p]sonal
  use4 ,al? "! is no /&by *>ge =!
  availabil;y ( ^! vehicles1 a taxa#
  b5efit "u p>agraph #f7#a77a7 may
  apply4 ,": a b5efit m/ 2 a4$ 69come "u
  p>agraph #f7#a77a7 z a result (!
  p]sonal use (a motor vehicle o!r ?an
  an automobile1 ! employ] m/ r1sonably
  e/imate ! fair m>ket value 6! employee
  ( t b5efit & 9cr1se x 0an am.t 7see
  #a7c7 abv7 6reflect ! equival5t (!
  ,,gst4 ,! am.t an employee wd h _h
  6pay 9 an >m's l5g? transac;n =! use (
  -p>a# transport,n c 2 3sid]$ 6be !
  fair m>ket value (! actual b5efit4 ,9
  ? reg>d1 ! am.t an employee wd usu,y
  pay 9 an >m's l5g? transac;n wd 9clude
  items s* z ! co/ ( l1s+ a -p>a#
  vehicle z well z any o!r relat$ op]at+
  co/s b1 pursuant 6subsec;n #f7#g71
  exclud+ ! ,,gst4 ,a b5efit calculat$
  on ! basis ( an appor;n;t (! employ]'s
  op]at+ co/s & capital co/ all[.e does
  n necess>ily repres5t ! value (!   #dg
              ,o!r b5efits           d#h
  b5efit 6! employee un.s t appor;n;t
  approximates ! am.t ! employee wd h _h
  6pay =! use (! vehicle :5 us$ =!
  purpose = : x 0 design$4 ,on ! o!r h&1
  ": a motor vehicle o!r ?an an
  automobile is ess5tial 6! employ]'s
  busi;s op],n1 & xs only p]sonal use is
  6provide transport,n 2t an employee's
  resid;e &! employ]'s busi;s premises1
  x may 2 appropriate 6calculate !
  b5efit 6! employee on a c5ts-p]-
  kilometre basis = equival5t automobile
  transport,n4 ,! rates prescrib$ 9
  sec;n #gcjf (! ,regul,ns w usu,y 2
  a3ept$ 9 ? situ,n4
#bd4 ,subsec;n #f7#a.a7 provides t an
  am.t or a b5efit =! use 7: 9cludes !
  op],n7 (a motor vehicle 0a taxpay]
  does n 9clude any am.t or b5efit
  relat$ 6! p>k+ (! vehicle4 ,s9ce
  p>agraphs #f7#a77k7 & 7l7 >e 3c]n$ )
  b5efits relat$ 6! op],n ( an
  automobile1 any b5efit relat$ 6p>k+ an
  automobile is n 9clud$ 9 9come     #dh
              ,o!r b5efits           e#h
  "u ^? p>agraphs4 ,h["e1 b5efits relat$
  6p>k+ >e 9clud$ 9 9come "u p>agraph
  #f7#a77a7 :ile an am.t t is equival5t
  6! ,,gst on ! p>k+ is 9clud$ 9 9come
  "u p>agraph #f7#a77e4#a74 ,no b5efit =
  p>k+ is imput$ = p>k+ co/s relat$
  6busi;s travel4

          ,report+ ,require;ts
    
#be4 ,! value (a b5efit f a motor
  vehicle provid$ to
  7a7 an employee or a p]son relat$ 6!
    employee1 or
  7b7 an 9dividual :o is bo? a %>ehold]
    & an employee &! motor vehicle is
    provid$ 6! 9dividual 7or a p]son
    relat$ 6! 9dividual7 9 ! capac;y (
    an employee
  is 6be 9clud$ 9 ! 9come f employ;t (!
  employee or 9dividual & report$ on a
  ,t#d ,supple;t>y 9 ,boxes #ad & #cd4

                                     #di
          ,report+ require;ts         #i
#bf4 ,! value (a b5efit f a motor
  vehicle provid$ to
  7a7 a %>ehold] 7or a p]son relat$ 6!
    %>ehold]7 :o is n an employee1 or
  7b7 an 9dividual :o is bo? a %>ehold]
    & an employee &! motor vehicle is
    provid$ 6! 9dividual 7or a p]son
    relat$ 6! 9dividual7 9 ! capac;y (a
    %>ehold]
  
  is 6be report$ on a ,t#d;,a
  ,supple;t>y 9 ,box #bh--,o!r ,9come4

  ,if y h any -;ts reg>d+ ! matt]s
4cuss$ 9 ? bullet91 pl1se s5d !m to3
  ,director1 ,te*nical ,public,ns
    ,divi.n
  ,policy & ,legisl,n ,bran*
  ,rev5ue ,canada
  #hge ,h]on ,road
  ,ottawa ,,on
  ,k#a;,a #j;,l#h

                                     #ej
         ,explan,n ( ,*anges =       #aj
          ,9t]pret,n ,bullet9
             ,,it-#fc;,r#e
    
     ,b5efits1 ,9clud+ ,/&by ,*>ge
     = an ,automobile1 f ! ,p]sonal
        ,use (a ,motor ,vehicle
       ,suppli$ 0an ,employ]--af
                 #aiib
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6expla9 ! r1sons =! revi.ns 6an
9t]pret,n bullet94 ,x \tl9es revi.ns t
we h made z a result ( *anges 6! law1 z
well z *anges reflect+ new or revis$
de"p;tal 9t]pret,ns4

                ,ov]view
    
  ,? bullet9 describes ! valu,n (!
b5efit an employee derives f ! p]sonal
use & availabil;y ( an employ]'s motor
vehicle4                             #ea
           ,explan,n ( *anges       a#aj
  ,! bullet9 reflects am5d;ts 6! ,9come
,tax ,act result+ f ,s4,c4 #aiid1 c4#ba
7=m]ly ,bill ;,c-#bg7 &! a4i;n ( sec;n
#gcje.a7 (! ,9come ,tax ,regul,ns4

      ,legislative & ,o!r ,*anges
    
  ,! ,summ>y notes t ! value (! b5efit 9
3nec;n ) op]at+ co/s t an employee
derives f ! p]sonal use ( an automobile
suppli$ 0an employ] is curr5tly
calculat$ at ! rate ( #ab@c p] kilometre
= p]sonal use4 ,! ,summ>y al describes t
an am.t equal 6"o-half (! /&by *>ge
b5efit may 2 us$ z ! am.t (! op]at+ co/
b5efit 9 lieu (! #ab@c p] kilometre *>ge
": ! automobile is us$ prim>ily = busi;s
purposes4 ,a ta# ( 3t5ts foll[s !
,summ>y4
  ,p>agraph #a reflects ! ,bill ;,c-#bg
am5d;t 6p>agraph #f7#a77a7 : delet$ !
.op]at+ .co/ .b5efit f t p>agraph & a4$
p>agraph #f7#a77k7 6describe t b5efit4
,! 4cus.n ( z]o rat$ & exempt        #eb
           ,explan,n ( *anges       b#aj
supply has be5 delet$ :5 -p>$ 6p>agraph
#a ( ,,it-#fc;,r#d s9ce ^! supplies >e
g5],y n relevant 6? bullet94 ,! calcul,n
(! b5efits =! ./&by .*>ge &! equival5t
6! ,,gst on ! /&by *>ge >e al describ$4
  ,p>agraph #f reflects ! ,bill ;,c-#bg
am5d;t : a4$ p>agraph #f7#a77k7
6describe ! op]at+ co/ b5efit4 ,! op]at+
co/ b5efit "u p>agraph #f7#a77k7 is
3sid]$ 69clude ! ,,gst -pon5t ( t
b5efit4 ,p>agraph #f describes "o me?od
( calculat+ ! b5efit z 2+ "o-half (!
/&by *>ge m9us any reimburse;ts made 9 !
ye> or )9 #de "ds af ! ye> 5d4 ,p]sonal
& busi;s relat$ p>k+ co/s : 7 m5;n$ 9
p>agraph #f ( ,,it-#fc;,r#d >e 4cuss$ 9
p>agraph #bd ( ? bullet94
  ,p>agraph #g al reflects ! ,bill
;,c-#bg am5d;t : a4$ p>agraph #f7#a77k74
,p>agraph #g describes ! alt]nate me?od
( calculat+ ! op]at+ co/ b5efit z 2+ !
product (! prescrib$ rate multipli$ 0!
numb] ( kilometres t ! automobile 0
p]son,y us$ m9us any reimburse;ts    #ec
           ,explan,n ( *anges       c#aj
made 9 ! ye> or )9 #de "ds af ! ye> 5d4
,curr5tly1 ! prescrib$ rate is #ab c5ts
p] kilometre except = 9dividuals :o >e
prim>ily employ$ 9 sell+ or l1s+
automobiles1 9 : case ! prescrib$ rate
is #i c5ts p] kilometre4
  ,p>agraph #aj is simil> 6p>agraph #aj
( ,,it-#fc;,r#d b ! -;ts 3c]n+ p>agraph
#ab7#a77y7 h be5 mov$ 6p>agraph #ag 9 ?
bullet94
  ,p>agraphs #ab & #ac1 : >e simil>
6p>agraphs #aa & #ab ( ,,it-#fc;,r#d1 d
n rep1t ! descrip;n ( subsec;ns
#gcjg7#a7 & 7#c7 (! ,regul,ns4 ,^!
descrip;ns >e n "picul>ly relevant 6?
bullet94
  ,p>agraph #ad does n rep1t ! ref];e 6!
op]at+ co/s pd 0! employ] z 0 d"o 9
p>agraph #af ( ,,it-#fc;,r#d 9 !
,assump;ns 9 ! ,examples s9ce s*
assump;ns >e no l;g] nec 9 det]m9+ !
am.t (! op]at+ co/ b5efit "u p>agraph
#f7#a77k74 ,! ,examples 9 ? bullet9 h
be5 revis$ 6reflect ! op],n (        #ed
           ,explan,n ( *anges       d#aj
p>agraph #f7#a77k7 r ?an p>agraph
#f7#a77a74
  ,p>agraph #af 3solidates p>agraphs #ah
& #ai ( ,,it-#fc;,r#d4
  ,p>agraph #ah 7p>agraph #ad (
,,it-#fc;,r#d7 reflects ! ,bill ;,c-#bg
am5d;ts 6subsec;ns #ae7#a.d7 & 7#e74
,subsec;n #ae7#a.d71 : g5],y a4s !
equival5t 6! ,,gst 6%>ehold] b5efits1
has be5 am5d$ 6except subsec;n #ae7#e7 f
xs applic,n4 ,subsec;n #ae7#e71 :
provides ! g5]al rules = det]m9+ !
b5efit t a %>ehold] (a corpor,n derives
f use ( an automobile (! corpor,n1 has
be5 am5d$ 6reflect ! *anges 9 sec;n #f s
t a %>ehold]'s automobile b5efits w
3t9ue 6be calculat$ 9 g5],y ! same mann]
z ! automobile b5efits ( an employee :o
uses an employ]-suppli$ automobile4
  ,p>agraph #bb reflects ! 9troduc;n (
p>agraph #f7#a77l7 9 ,bill ;,c-#bg4 ,!
p>agraph 9cludes 9 9come ! b5efit rcvd
0an employee ": an employ] pays op]at+
co/s (! employee's automobile4       #ee
           ,explan,n ( *anges       e#aj
  ,p>agraph #bd1 "p ( p>agraph #f (
,,it-#fc;,r#d1 reflects ! 9troduc;n (
subsec;n #f7#a.a7 9 ,bill ;,c-#bg4 ,!
subsec;n provides t ! am.t or b5efit =!
use (a motor vehicle 0a taxpay] does n
9clude any am.t or b5efit relat+ 6! p>k+
(! vehicle4
-------------------------------------#aa
  ,p>agraph #be is a 3solid,n (
p>agraphs #bc & #bd ( ,,it-#fc;,r#d &
describes ! report+ ( b5efits 9 3nec;n
)a motor vehicle ": an 9dividual rcvs !
b5efits 9 ! capac;y ( an employee4
  ,p>agraph #bf is a 3solid,n (
p>agraphs #be & #bf ( ,,it-#fc;,r#d &
describes ! report+ ( b5efits 9 3nec;n
)a motor vehicle ": an 9dividual rcvs !
b5efits 9 ! capac;y (a %>ehold]4
  ,"?\t ! bullet9 we h delet$ obs]v,ns :
>e no l;g] relevant & we h revis$ "s (!
^w+ 6improve r1dabil;y )\t alt]+ !
sub/.e4

                                     #ef