Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Does the term "total available days" in subsection 6(2) of the Act include the days where a taxpayer goes away on a two week business trip and leaves his company car on company premises and leaves the car keys with the fleet manager so that other employees can use the vehicle while the taxpayer is gone.
Position: It will depend on the facts of the particular circumstances. In the situation where the taxpayer is required by his employer to leave the car on company premises and hand in the keys while absent on a business trip, then the days should not be included in the "total available days". If the automobile is left at the company premises at the taxpayer's discretion, then the days should be included in the "total available days"
Reasons: In the first situation, the taxpayer is required by the employer to return the automobile and the control over its use. As indicated in paragraph 11 of IT-63R5 this would be the time when total available days ends. In the second situation, the automobile is not required by the employer to be returned to the employer and, thus, should be included in the total available days.
December 7, 1999
Toronto West Tax Services Office HEADQUARTERS Mr. Mario Taddeo Jacques E. Grisé Employer Compliance Audit 957-2059
992882
Automobile Standby Charge
This is in reply to your E-mail of October 13, 1999, concerning the interpretation of the expression "total available days" for purposes of the automobile standby charge in subsection 6(2) of the Income Tax Act.
As you indicated, paragraph 11 of interpretation bulletin IT-63R5 states that the expression "total available days" includes the first day during which an automobile is made available to an employee, or to a person related to the employee, and each day thereafter until such time as the employee is required by the employer to return the automobile and the control over its use to the employer or a person related to the employer.
You are particularly concerned about the application of the above statement to a situation where employees go on a business trip for two weeks or a month and leave their car on company premises and also leave the car keys with the fleet manager so that other employees can use the vehicle while they are gone. Where, in the above situation, the employer requires the employee to leave the car on company premises and surrender the car keys, the days should not be counted in the total available days since "the employee is required by the employer to return the automobile and the control over its use". On the other hand, the days when the automobile is left on company premises at the employee's discretion, should be counted in the total available days.
We hope our comments are helpful.
John Oulton
Manager
Business, Property and Employment
Income Section III
Income Tax Rulings and
Interpretations Directorate
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