Can an employee use the Automobile allowance rates to deduct motor vehicle expense?

Hi there,
Can an employee who’s using his/her car for work use the CRA std rate to deduct motor vehicle expense? i.e. number of KM’s driven for work X CRA automobile allowance.

Yes, I do it myself, tax free money to the employee as long as no related expenses are claimed. Last year I received ~24k which exceeded my actual costs. Company can claim an ITC.

I think Mark is talking about a T777 employment expense deduction, not a employer provided automobile allowance.

“Can an employee who’s using his/her car for work use the CRA std rate to deduct motor vehicle expense?”

EVEN IF all of the strict terms and conditions allowing ANY deduction are met, that would still be the MOST EXPENSIVE way for an employee to go.

Why on earth would the Employer not be paying all of the Employer’s own expenses?

CRA Audits come up regularly for these types of things, and for very good reason…

Yes, I’m talking about the T777 Statement of Employment Expenses

Agree @joe.justjoe1
I have a client who just dropped me T2200 with tons of exps. his employer didn’t reimburse.
The problem the client doesn’t have a decent records and we’re looking for a simplified way to work around the issue.

If “there are tons of exps.his employer didn’t reimburse” then I would strongly suggest that they were NOT “using his/her car for work use”…

I believe so.
but i have to stick with the docs/evidence I’ve got.

Unfortunately, so far, the “evidence for work use” that you have seems to be somewhat thin?

Did he fill out a weekly or monthly travel/km log expense report and submit it to his employer for reimbursement?
Why not?
He has detailed logs of where he went and why? (not driving to work, from home of course).

I asked him to provide motor vehicle logbook& vehicle expenses breakdown. He’ll get me the logbook but he doesn’t have decent records for the vehicle exps.
That’s why I was wondering if we could use the CRA allowance rate.

“That’s why I was wondering if we could use the CRA allowance rate.”

The answer to that is no…

(He should have a conversation with his employer about expense claim reports for 2021, as applicable.)

@joe.justjoe1 Thanks!

Try a calendar of meeting dates, GoogleMaps for distances travelled, credit card and bank statements for expenses. Alternative to calendar, search through emails regarding meetings/inspections, etc.

Thank you.
We’ll do that for sure.

Many employers do not reimburse auto expenses; that does not mean employees may not qualify for expensing such travel. The two have nothing to do with each other.

If the employee qualifies under ITA Sec 8(1)(h) AND if the employer provides a T2200 AND the employee has expense receipts, the appropriate claim method is total vehicle expenses x (biz miles/total miles).

Specified mileage allowance rates, while widely used as a shortcut, are unacceptable. They are used for a different purpose entirely.

And, FWIW, a number of employers reimburse only certain types of auto expenses (eg out of town trips) while requiring employees to bear the burden of their in-town travel as required by the employer. Not at all uncommon.


@SmallBizGuy Thanks!
I already submitted the file using the T777 with all required details.