I-3 - Taxation Act

Section 41.1.1 Disposition versions

2021-12-10

41.1.1. Where, in computing the income of the individual for a taxation year as income from an office or employment, a reasonable amount corresponding to the value of the right of use of an automobile is determined under sections 41 to 41.0.2, and an amount in respect of the operation, otherwise than in connection with or in the course of the individual’s office or employment, of the automobile for the period or periods in the year during which the automobile was made available to the individual or a person related to the individual is paid or payable by the individual’s employer or a person related to the individual’s employer, each of whom is in this section referred to as the “payor”, the individual shall, in computing the individual’s income for the year from an office or employment, include the amount determined by the formula

A − B.

For the purposes of the formula in the first paragraph,

(a)  A is

i.  where the automobile is used primarily in the performance of the duties of the individual during the period or periods referred to in the first paragraph and the individual notifies the employer in writing before the end of the year of the individual’s intention to have this subparagraph apply, one-half of the reasonable amount corresponding to the value of the right of use determined in respect of the automobile under sections 41 to 41.0.2 in computing the individual’s income for the year, and

ii.  in any other case, the amount equal to the product obtained when the amount prescribed for the year is multiplied by 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 period or periods referred to in the first paragraph; and

(b)  B is the aggregate of all amounts in respect of the operation of the automobile in the year paid in the year or within 45 days after the end of the year to the payor by the individual or by the person related to the individual.

This section does not apply where the aggregate of all amounts each of which is an amount referred to in the first paragraph, paid or payable by the payor, is paid, in the year or within 45 days after the end of the year, to the payor by the individual or by the person related to the individual.

For the purposes of this section in respect of an automobile provided by the payor in 2020 or 2021 (in this paragraph referred to as the “relevant year”), where an individual has met the condition in subparagraph i of subparagraph a of the second paragraph for the 2019 taxation year in respect of the use of an automobile made available to the individual, or to a person related to the individual, by the payor, the amount represented by A in the formula in the first paragraph in respect of the automobile for the relevant year is deemed to be equal to the lesser of

(a)  one-half of the reasonable amount that corresponds to the value of the right of use determined in respect of the automobile under sections 41 to 41.0.2 for the relevant year; and

(b)  the amount determined in respect of the automobile under subparagraph ii of subparagraph a of the second paragraph for the relevant year.

1995, c. 49, s. 22; 1998, c. 16, s. 48; 2021, c. 36, s. 52.

2006-03-01

41.1.1. Where, in computing the income of the individual for a taxation year as income from an office or employment, a reasonable amount corresponding to the value of the right of use of an automobile is determined under sections 41 to 41.0.2, and an amount in respect of the operation, otherwise than in connection with or in the course of the individual’s office or employment, of the automobile for the period or periods in the year during which the automobile was made available to the individual or a person related to the individual is paid or payable by the individual’s employer or a person related to the individual’s employer, each of whom is in this section referred to as the “payor”, the individual shall, in computing the individual’s income for the year from an office or employment, include the amount determined by the formula

A − B.

For the purposes of the formula in the first paragraph,

(a)  A is

i.  where the automobile is used primarily in the performance of the duties of the individual during the period or periods referred to in the first paragraph and the individual notifies the employer in writing before the end of the year of the individual’s intention to have this subparagraph apply, one-half of the reasonable amount corresponding to the value of the right of use determined in respect of the automobile under sections 41 to 41.0.2 in computing the individual’s income for the year, and

ii.  in any other case, the amount equal to the product obtained when the amount prescribed for the year is multiplied by 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 period or periods referred to in the first paragraph; and

(b)  B is the aggregate of all amounts in respect of the operation of the automobile in the year paid in the year or within 45 days after the end of the year to the payor by the individual or by the person related to the individual.

This section does not apply where the aggregate of all amounts each of which is an amount referred to in the first paragraph, paid or payable by the payor, is paid, in the year or within 45 days after the end of the year, to the payor by the individual or by the person related to the individual.

1995, c. 49, s. 22; 1998, c. 16, s. 48.