Subject: Automobile Benefit Provision
We have been in correspondence with 19(1) regarding the application of the standby charge provisions to a pooling situation, where the employer maintains a fleet of automobiles but does not assign specific automobiles to particular employees. The original enquiry contained some technical issues to which we have responded. We have attached copies of their letter and our recent response.
You will note that one of the points raised by 19(1) is that, in a pooling situation, where the vehicles are used; by various employees, but where in excess of ten percent of the distance logged by the automobiles is for personal purposes, each employee who has had access to the fleet would be assessed the full standby charge. It would even apply to those employees whose usage of the vehicles is strictly employment-related. We have reviewed the matter and have confirmed their technical interpretation of the provisions.
Due to the apparent inequitable result to the employee whose usage of the automobile is strictly employment-related, 19(1) has asked the Department to consider whether an alternative benefit calculation can be used; for example, the cents-per-kilometre option described in paragraph 13 of IT-63R3. Paragraph 13 deals with the calculation of a personal use benefit for vehicles other than automobiles. We inquired in early December (Szeszycki/Richardson) whether any administrative practice had as yet been considered for this type of situation and we understand that there has not.
Please note that our response to 19(1) indicated that your Division would consider the administrative aspects of his enquiry and respond to him shortly. If we can be of any further assistance in this matter please contact Jack Szeszycki at 957-2103.
B.W. DathDirectorBusiness and General DivisionRulings Directorate Legislative and Intergovernmental Affairs BranchAttachment