Automobile you lease
You must use the detailed calculation to calculate the standby charge for employer leased automobiles.
1) Your leasing costs
Leasing costs of your automobile used in calculating the standby charge includes both of the following:
- the rental cost for the automobile
- any associated costs, such as maintenance contracts, excess mileage charges, terminal charges less terminal credits, and the GST/HST and PST that you pay to the lessor under the leasing contract
Leasing costs do not include liability and collision insurance costs.
2) 30 day periods
When you divide the total days available by 30, round off the result to the nearest whole number if it is more than one.
20 days ÷ 30 = 0.67 (do not round off)
130 days ÷ 30 = 4.33 (round to 4)
135 days ÷ 30 = 4.50 (round to 4)
140 days ÷ 30 = 4.67 (round to 5)
3) Personal kilometres
A reimbursement is an amount you receive from your employee to repay you for some of your automobile costs. The amount the employee reimburses you may be used to reduce the employee's taxable benefit.
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