Ask an Expert, with Annie Chong

Non-taxable car allowances • Employer obligations for a T2200 • Guidelines for creating electronic TD1s
By Annie Chong
|Canadian Payroll Reporter|Last Updated: 08/13/2014

Question: Our company will be paying some employees a monthly per-kilometre car allowance for using their personal vehicle for business reasons. Under what conditions are these allowances considered non-taxable?

Answer: For an automobile allowance to be considered non-taxable, it must be considered “reasonable,” according to