Canada Revenue Agency
www.cra.gc.ca
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Calculating automobile benefits
The benefit for an automobile you provide for the year is generally:
- a standby charge for the year; plus
- an operating expense benefit for the year; minus
- any reimbursements employees make in the year for benefits you otherwise include in their income for the standby charge or the operating expenses.
Tools to help you calculate the automobile benefit
You can use either of the tools below to calculate the estimated automobile benefit for withholding purposes and the taxable benefit that you have to report on the T4 or T4A slip.
Keeping records
You and your employees have to keep records on the usage of the vehicle so that you can properly identify the business and personal use amounts of the total kilometres driven in a calendar year by an employee or a person related to the employee. The records may contain information relating to the business destination such as the date, the name and address of the client, and the distance travelled between home and the client's place of business. For more information, see Keeping records or Guide RC4409, Keeping Records.
Forms and publications
