COVID-19 Tax Break on Vehicle Taxable Benefit

COVID-19 Tax Break
on Vehicle Taxable Benefit

 
December 21, 2020
When an employee uses a company vehicle for personal use, it is considered a taxable benefit by Canada Revenue Agency (standby charge and operating expense benefit).
 
 
Due to the pandemic, many employees have not used their company vehicles for business purposes as much as previous years. As a result, they may no longer qualify for the reduced standby charge for tax purposes.

To address this, the government proposes to allow employees to use their 2019 automobile usage to determine whether they use the automobile primarily for business purposes. Only employees with an vehicle provided by the same employer as in 2019 would be eligible for this option.
Full details here
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