Automobile Made Available to an Employee

Note
Attention

The information on this page does not take into account the temporary rules for calculating the benefit related to an automobile for 2020 and 2021. For information regarding the temporary rules, see the Principal Changes page.

End of note

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.

Note

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.

End of note

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:

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.

Note
  • 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.
End of note

For sample automobile benefit calculations, see guide IN-253-V, Taxable Benefits.

One mission. Concrete actions.

Read all about how we work to support and inform you. Our vision and values guide us as we carry out our role.

Veuillez patienter