Automobile and motor vehicle benefits
The term vehicle includes both automobiles and motor vehicles not defined as an automobile. Although an automobile is a kind of motor vehicle, we treat them differently for tax purposes.
An employee may use one of your vehicles for purposes other than business. The personal use of the vehicle is considered a taxable benefit for the employee. For more information, see Personal driving.
An employee may use his or her personal vehicles to carry out his or her employment duties and get an allowance for the business use of that vehicle. The reimbursement for this use may be a taxable benefit. For more information, see Automobile and motor vehicle allowances.
If the vehicle you provide to your employee is not included in the definition of Automobile as described, see Benefit for motor vehicles not defined as an automobile.
- Facts about automobile and other vehicle benefits and automobile allowances
- 2013 Automobile Deduction Limits and Expense Benefit Rates for Business (Finance Canada Web site)
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