We provide the company vehicle to our employees for business purposes only. They must park the car in the company yard at the end of the day. This is a waste of time. We are looking at the way by which technicians can take trucks homes, but it should not be a taxable benefit for them.
Do you have any suggestions?
As far as I am aware anytime they take a company vehicle home it would be a taxable benefit. The tax implication for the employee is minimal so its really a benefit to the employee to not have to use their own vehicle.
We’re going through an employer compliance audit with the CRA right now. This audit looks at things like taxable benefits and the only way our company vehicles were considered not a taxable benefit is because they are parked on our company property when not in use for business purposes.
The second they take those vehicles home it is now a taxable benefit. Think of it this way, if I’m driving to & from work in a work vehicle, now my commute cost is being covered by the company (therefore it’s taxable). If you guys do choose to go the route of allowing employees to take company vehicles home, you should just go full-fledged into it!
We allow our employees to take company vehicles home when they are on-call. We had them sign a personal use of a company motor vehicle, which outlines that they must submit a mileage log sheet recording business and personal mileage each day whenever they are on-call. We use the log sheets to calculate the taxable benefit at the fixed rate. It is a very manual process, but necessary to stay compliant.
Thanks, Gail, we are also doing that. But now I was asked to figure out how we can have them use the company vehicle, and there should not be any taxable benefits. I contacted NPI, and the only response I got is if the vehicle is used for only business purposes.
