The taxable benefit and allowance

The rates for automobile expenss are increasing for 2006

The general prescribed rate used to calculate the taxable benefit for an employee's personal use of an employer-provided automobile is 22 cents per kilometre. The rate for employees whose principal job is to sell or lease automobiles in 19 cents per kilometre.

The limit for tax-exempt allowances employers pay to employees is 50 cents per kilometre for the first 5,000 kilometres and 44 cents per kilometre for each additional kilometre.

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