Automobile Standby Charge – Temporary Adjustments Due to COVID-19

Your #1 resource for anything Small Business. As a small business owner check back often for valuable insight into how to make your business more profitable.

Reduced business activity and other changes to our daily lives during the pandemic, may result in an employee’s business or personal use of the employer provided automobile such that the business use may end up being substantially be less than the personal use and therefore the employee may no longer qualify for the reduced standby charge.

To address this, the government proposes to allow employees to use there 2019 automobile usage to determine whether they use the automobile primarily for business purposes in order to access the reduced standby charge in 2020 and 2021.

Only employees with an automobile provided by the same employer as in 2019 would be eligible for this option.

For further details, please visit

https://www.canada.ca/en/department-finance/news/2020/12/temporary-adjustments-to-the-automobile-standby-charge-for-the-2020-and-2021-taxation-years-due-to-covid-19.html

For any questions or concerns, please feel free to connect with us at Support@padgettvaughan.ca