Letter to the editor.

• Author: Neilson, Hugh
• Position: Brief Article - Letter to the Editor

Dear Editor

I found the article on The Company Car on page 44 of the December/January of LawNow to be an excellent summary of the income tax issues which should be considered by employees offered a company car. Often, the tax consequences, as well as CRA's documentation requirements, come as a very unwelcome surprise to employees.

I did, however, notice an error in the discussion of reductions to the standby charge where the company car is used primarily for business use.

The reduced standby charge in this example is indicated as being 2,300 personal km/22/300 total driving in the year = 10.3%.

However, the denominator in this formula is fixed by statute at 1,667...