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:
By virtue of section 230(1) an employer must keep records and books of account to determine the amount of taxes payable under the Act. However, it does not set out documentary requirements for recording the usage of a vehicle.
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.