I-3 - Taxation Act

Section 40.1 Disposition versions

2006-03-01

40.1. For the purposes of paragraph e of section 39 and paragraphs a and c of section 40, an allowance received in the year by the individual for the use of a motor vehicle in connection with or in the course of the individual’s office or employment is deemed not to be a reasonable allowance

(a)  where the measurement of the use of the vehicle for the purpose of determining the allowance is not based solely on the actual number of kilometres for which the motor vehicle is used in connection with or in the course of the office or employment; or

(b)  where the individual both receives an allowance in respect of that use and is reimbursed in whole or in part for expenses in respect of that use, except where the reimbursement is in respect of supplementary business insurance or toll or ferry charges and the amount of the allowance was determined without reference to those reimbursed expenses.

1990, c. 59, s. 36; 1993, c. 16, s. 25; 1995, c. 49, s. 20; 1998, c. 16, s. 44; 2003, c. 9, s. 19.