I-3 - Taxation Act

Section 41.0.1 Disposition versions

2021-12-10

41.0.1. For the purposes of section 41, a reasonable amount corresponding to the value of the right of use of an automobile for the total number of days, in this section referred to as the “total available days”, in a year during which the automobile is made available to an individual or to a person related to the individual by an employer or a person related to the employer, both of whom are in this section referred to as “the employer”, is deemed to be equal to the amount determined by the formula

A / B [2% (C × D) + 2/3 (E − F)].

In the formula provided for in the first paragraph,

(a)  A is

i.  the lesser of the total number of kilometres that the automobile is driven, otherwise than in connection with or in the course of the individual’s office or employment, during the total available days, and the product determined for the year under subparagraph b, if

(1)  the individual is required by the employer to use the automobile in connection with or in the course of the office or employment, and

(2)  the distance travelled by the automobile during the total available days is primarily in connection with or in the course of the office or employment, and

ii.  in any other case, the product determined for the year under subparagraph b;

(b)  B is the product obtained by multiplying 1,667 by the quotient obtained by dividing the total available days by 30 and, if the quotient so obtained is not a whole number and exceeds one, by rounding it to the nearest whole number or, where that quotient is equidistant from two consecutive whole numbers, by rounding it to the lower of those two numbers;

(c)  C is the cost of the automobile to the employer where the employer owns the vehicle at any time in the year;

(d)  D is the quotient obtained by dividing such of the total available days as are days when the employer owns the automobile by 30 and, if the quotient so obtained is not a whole number and exceeds one, by rounding it to the nearest whole number or, where that quotient is equidistant from two consecutive whole numbers, by rounding it to the lower thereof;

(e)  E is the aggregate of all amounts that may reasonably be regarded as having been payable by the employer to a lessor for the purpose of leasing the automobile during such of the total available days as are days when the automobile is leased to the employer;

(f)  F is the part of the amount determined under subparagraph e that may reasonably be regarded as having been payable to the lessor in respect of all or part of the cost to the lessor of insuring against loss of, or damage to, the automobile or liability resulting from the use or operation of the automobile.

The condition in subparagraph 2 of subparagraph i of subparagraph a of the second paragraph is deemed to be met for an individual’s 2020 or 2021 taxation year, in respect of an employer, if the conditions in subparagraphs 1 and 2 of that subparagraph i are met for the individual’s 2019 taxation year in respect of an automobile made available to the individual, or to a person related to the individual, by that employer.

1990, c. 59, s. 38; 1998, c. 16, s. 46; 2005, c. 1, s. 28; 2021, c. 36, s. 51.

2006-03-01

41.0.1. For the purposes of section 41, a reasonable amount corresponding to the value of the right of use of an automobile for the total number of days, in this section referred to as the “total available days”, in a year during which the automobile is made available to an individual or to a person related to the individual by an employer or a person related to the employer, both of whom are in this section referred to as “the employer”, is deemed to be equal to the amount determined by the formula

A / B [2% (C × D) + 2/3 (E − F)].

In the formula provided for in the first paragraph,

(a)  A is

i.  the lesser of the total number of kilometres that the automobile is driven, otherwise than in connection with or in the course of the individual’s office or employment, during the total available days, and the product determined for the year under subparagraph b, if

(1)  the individual is required by the employer to use the automobile in connection with or in the course of the office or employment, and

(2)  the distance travelled by the automobile during the total available days is primarily in connection with or in the course of the office or employment, and

ii.  in any other case, the product determined for the year under subparagraph b;

(b)  B is the product obtained by multiplying 1,667 by the quotient obtained by dividing the total available days by 30 and, if the quotient so obtained is not a whole number and exceeds one, by rounding it to the nearest whole number or, where that quotient is equidistant from two consecutive whole numbers, by rounding it to the lower of those two numbers;

(c)  C is the cost of the automobile to the employer where the employer owns the vehicle at any time in the year;

(d)  D is the quotient obtained by dividing such of the total available days as are days when the employer owns the automobile by 30 and, if the quotient so obtained is not a whole number and exceeds one, by rounding it to the nearest whole number or, where that quotient is equidistant from two consecutive whole numbers, by rounding it to the lower thereof;

(e)  E is the aggregate of all amounts that may reasonably be regarded as having been payable by the employer to a lessor for the purpose of leasing the automobile during such of the total available days as are days when the automobile is leased to the employer;

(f)  F is the part of the amount determined under subparagraph e that may reasonably be regarded as having been payable to the lessor in respect of all or part of the cost to the lessor of insuring against loss of, or damage to, the automobile or liability resulting from the use or operation of the automobile.

1990, c. 59, s. 38; 1998, c. 16, s. 46; 2005, c. 1, s. 28.