Automobile and motor vehicle allowances
An allowance is any payment that employees receive from an employer for using their own vehicle in connection with or in the course of their employment without having to account for its use. This payment is in addition to their salary or wages. An allowance is taxable unless it is based on a reasonable per-kilometre rate.
Employees receiving a taxable allowance may be able to claim allowable expenses on their income tax and benefit return. For more information, see Employees' allowable employment expenses.
This section explains common forms of automobile and motor vehicle allowances.
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