# Shareholder-Employee Auto + Other Expenses

**URL:** <https://www.protaxcommunity.com/t/shareholder-employee-auto-other-expenses/2836>\
**Category:** Tax Topics\
**Created:** [December 21, 2019, 9:08pm UTC](https://www.protaxcommunity.com/t/shareholder-employee-auto-other-expenses/2836 "2019-12-21T21:08:26Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![dominique\_dabolczi](https://avatars.discourse-cdn.com/v4/letter/d/7ab992/32.png) [@dominique\_dabolczi](https://www.protaxcommunity.com/u/dominique_dabolczi)\
**Post date:** [December 21, 2019, 9:08pm UTC](https://www.protaxcommunity.com/t/shareholder-employee-auto-other-expenses/2836/1 "2019-12-21T21:08:26Z")

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This post has to do with Shareholder-Employees deducting work related expenses on their T1 Personal Income Tax Return

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**When can shareholder-employees deduct expenses?**  
**August 2019**

Until now, there has been some confusion over tax claims for auto and other work-related costs of shareholder employees, as our [Tax Blog](https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/blog/2018/may/cra-reverses-shareholders-employment-expense-reassessments) highlighted. CPA Canada raised the issue with the Canada Revenue Agency (CRA), and the CRA developed draft guidance with our input to clarify how these rules apply.

The CRA’s guidance is now finalized. In a ​[stakeholder email](https://www.cpacanada.ca/-/media/site/operational/tx-taxation/docs/cra-blurb.pdf) that the CRA asked us to share with our members, the CRA explains how shareholder-employees who meet two key conditions may be allowed to deduct employment expenses.

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[https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/corporate-tax/publications/tax-resources-for-cpas?sc\_camp=2B7FEA8921654C33B40CFBF0A25EE6C5%20](https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/corporate-tax/publications/tax-resources-for-cpas?sc_camp=2B7FEA8921654C33B40CFBF0A25EE6C5%20%0d)

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[https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/blog/2018/may/cra-reverses-shareholders-employment-expense-reassessments](https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/blog/2018/may/cra-reverses-shareholders-employment-expense-reassessments)

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Click on this link to obtain the CRA finalized download

​[stakeholder email](https://www.cpacanada.ca/-/media/site/operational/tx-taxation/docs/cra-blurb.pdf)

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<div class="post-metadata">

**Author:** ![SmallBizGuy](https://avatars.discourse-cdn.com/v4/letter/s/74df32/32.png) [@SmallBizGuy](https://www.protaxcommunity.com/u/SmallBizGuy)\
**Post date:** [December 23, 2019, 7:35pm UTC](https://www.protaxcommunity.com/t/shareholder-employee-auto-other-expenses/2836/2 "2019-12-23T19:35:13Z")

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This, of course is largely public relations pap. Any practitioner knows this. If they don’t – they shouldn’t be practicing tax. None of this has changed substantially for many years. There are loads of tax cases of _qua employee_ vs _qua shareholder_ of all sorts.