Tax Benefits Adjustments
The Department of Finance Canada on December 21, 2020 has released a Temporary Adjustments to the Automobile Standby Charge for the 2020 and 2021 Taxation Years Due to COVID-19. This is in response to the drivers who would normally incur more business than personal mileage and would be eligible for a reduction to their Automobile Standby Charge & Operating Expense Benefit. The pandemic has resulted in some drivers having their incurred personal Km’s to be more than 50% of their total mileage driven in the company vehicle, thereby losing their eligibility for the noted reductions.
The government has now allowed the use of a drivers prior 2019 business/personal mileage ratios to determine if an affected driver is eligible to access the reduced Standby Charge and Operating Expense Benefit Charge in 2020 and 2021. This is only applicable for employee’s with an automobile provided by the same employer as in 2019.
In response to this adjustment, we will be revising our Taxable Benefits calculations to include these measures. For any clients that have already received their Taxable Benefit Report for the 2020 year, we will send out a revised report, highlighting the affected employees, over the next few business days.
The following is the link to the Finance Canada website Temporary Adjustments to the Automobile Standby Charge for the 2020 and 2021 Taxation Years Due to COVID-19 - Canada.ca
If you have any questions, please send an email to Taxben@fossnational.com.
During this very uncertain time we are experiencing many closures from our vendors, suppliers and local ministries. This is a fluid situation that is constantly changing and beyond our control. If you have any upcoming maintenance, deliveries or services scheduled please connect with the dealership or service shop to ensure they are still operating so that your drivers do not experience any delays. If you are unsure, please contact our customer care team and they will be happy to assist you.
GM, Ford and FCA have announced temporary production suspensions. Stay tuned to their respective media sites for updates.
Some Canadian licensing offices have announced closures. For information on your local office, please visit their website.
Prince Edward Island
Newfoundland and Labrador
Our rental car partners have also announced closures and additional measures to protect their customers.
Some CARSTAR locations in Quebec are reopening. Visit their website for a location near you.
Other important links
Ontario Extending Validation Periods for Drivers and Vehicles
Essential Service List for Quebec