Weekly Tax Tips
Reimburse personal operating costs on employer provided automobiles before February 14th
14 Jan 2009
If your employer provides you with a company car, a taxable benefit will be included on your T4. The actual benefit is made up of two parts. The first part is a standby charge based on a percentage of the original cost or the monthly lease payments for the automobile. The second part applies if your employer pays the automobile’s operating expenses. In 2008, this benefit is equal to 24¢ per personal kilometre driven and applies unless all amounts paid for personal operating expenses are reimbursed to the employer by February 14, 2009.
The standby charge and the operating benefit are reduced by the amounts you pay to your employer. For a standby charge reduction, your payment must be made during 2008. For an operating benefit reduction, your payment must be made by February 14, 2009.
This tax tip is a publication of BDO Dunwoody LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 14 Jan 2009.
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