Business lockdowns, reduced business activity, and other changes to peoples daily and business lives throughout the pandemic, may have resulted in an employee's business or personal mileage being reduced compared to a normal year. The CRA has responded to this with new temporary adjustments to the Automobile Standby Charge for the 2020 and 2021 taxation years.

If employees have used the automobile substantially less for business purposes during the pandemic, they may no longer qualify for the reduced standby charge for tax purposes, even though their personal driving use might be similar or less than last year.

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 in order to access the reduced standby charge in 2020 and 2021. Only employees with an automobile provided by the same employer as in 2019 would be eligible for this option.

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