Does the taxpayer still need to show receipts for the motor vehicle expenses or any other employment expenses reimbursed by the employer and added to his/her T4. If he/she claims the deduction for these expenses as this is not really his/her income, should he/she need to prove these expenses by providing the receipts in case CRA performs an audit on this individual.
The client may submit all the receipts to the employer to get the reimbursement.
I would think the answer is “yes” because you just reduce your claim for expenses by the reimbursement. Therefore, it would make sense that you need to justify the total expenses being claimed.
Yes absolutely they would need to provide receipts when CRA asks. I’ve been through hundreds of reviews of employment expenses exactly of this nature so always get clients to keep receipts.
That number is the amount of income added to the T4. It should represent an allowance, not a reimbursement of expenses. A reimbursement of expenses is generally not added to the T4. If the taxpayer is entitled to deduct any expenses against this income, yes they would have to provide receipts upon review.
echoing iain’s comment… reimbursements of expenses don’t go on your T4, just allowances. with auto’s I don’t usually see a reimbursement without also some form of company owned vehicle, which would lead you down the taxable benefits path, unless it is specifically for employment use ie a business trip, however in those cases it is normal to instead see a per km charge paid as opposed to an automobile reimbursement expense?
perhaps some missing information that paints the full picture?
