Automobile Made Available to an Employee
We consider that you make an automobile available to an employee where you entrust the automobile to the care and control of the employee and authorize the employee to make personal use of the automobile or do not forbid such use.
There is no taxable benefit if the employee uses the automobile only for work, even if the vehicle is available to the employee throughout the year. A taxable benefit results if the employee uses the automobile for personal purposes, or if the automobile made available to the employee is not required for their job.
Value of a benefit
If you or a person related to you makes an automobile available to an employee or to a person related to an employee, you must calculate the value of the benefit related to that automobile. This is a two-step calculation: first, you have to calculate the value of the benefit related to the standby charge for the automobile, then, the value of the operating-costs benefit.
To do the calculations, you can use work chart TP-41.C-V, Calculation of an Automobile Benefit, or consult the following pages:
- Calculating the Value of the Standby Charge for an Automobile
- Calculating the Value of the Operating-Costs Benefit
The total value of the automobile benefit must be included in boxes A and W and, where applicable, in box G of the employee's RL-1 slip (see courtesy translation RL-1-T). For more information, go to the Benefit Provided to an Employee page.
- The employee (or a person related to the employee) must keep a logbook of the trips made with the automobile and give you a copy of the logbook.
- The value of the taxable benefit calculated over the course of the year must be based on estimates and be apportioned over all the pay periods in the year. At the end of the year, you have to use the actual number of kilometres travelled in the year to determine the actual value of the benefit to be entered on the employee's RL-1 slip.
For sample automobile benefit calculations, see guide IN-253-V, Taxable Benefits.