Is an employer required to obtain an employee's travel logbook when providing the employee with a vehicle; and if such a record is not provided, how should the employer calculate taxable benefits? CRA responded:
The best way to determine that a vehicle is used for commercial or personal purposes is to keep an accurate record of all trips made for the whole year, including for each trip the date, destination, the reason for the travel and the distance traveled.
In general, it is expected that a person who uses a motor vehicle for commercial and personal purposes will maintain a record that objectively determines the use of that vehicle.
In the absence of such a record, an employer must demonstrate by other means how the employer determined the value of the benefit that the employee must include in computing the employee’s income.