Calculating a standby charge for automobiles you own or lease

The standby charge is for the benefit employees get when your automobile is available for their personal use. Any reimbursements you receive from your employee, other than expenses relating to the operation of the automobile, will decrease the standby charge that has to be included in your employee’s income.

The following information about personal use, availability and reducing the standby charge is the same whether you own the automobile or lease it.

Availability and personal use

An automobile is available to your employee if he or she has access to or control over the vehicle. It includes any part nof a day, weekends and holidays during the calendar year. If your employee does not use your automobile for any personal driving, there is no taxable benefit, even if the automobile is available to your employee for the entire year. This applies as long as the kilometres driven by your employee were in the course of his or her employment duties and the vehicle is returned to your premises at the end of his or her work day.

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