Top-up payments, vehicle logbook rules (Ask an Expert)

"Without the logbooks,the CRA will generally assume that the employee’s personal use was 2,004 kilometres a year"
By Annie Chong
|Canadian Payroll Reporter|Last Updated: 12/13/2012

Logbooks for employer-provided automobiles

Question
: We provide automobiles for work to a number of our employees. I have just discovered that some of them have not kept complete logbooks of their business and personal driving. Do I need complete logbooks to calculate their taxable benefit or can I base it on partial information?

Answer: It is essential employees keep complete, accurate and up-to-date logbooks on their driving when they have an employer-provided automobile. The logbooks must contain information on the total number of kilometers the employee (or a person related to the employee) drove for business and for personal use in the calendar year.