Income Tax Act — I-3.3 6
n respect of, in the course of or because of, the taxpayer’s office or employment. Parking cost (1.1) For the purposes of this section, an amount or a benefit in respect of the use of a motor vehicle by a taxpayer does not include any amount or benefit related to the parking of the vehicle. Deeming rule — amount received (1.2) For the purposes of paragraph (1)(g), an amount received by an individual out of or under an employee benefit plan is deemed to have been received by a taxpayer and not by the individual if (a) the individual does not deal at arm’s length with the taxpayer; (b) the amount is received in respect of an office or employment of the taxpayer; and (c) the taxpayer is living at the time the amount is received by the individual. Reasonable standby charge (2) For the purposes of paragraph (1)(e), a reasonable standby charge for an automobile for the total number of days (in this subsection referred to as the “total available days”) in a taxation year during which the automobile is made available to a taxpayer, or to a person who does not deal at arm’s length with the taxpayer, by a person (referred to in this subsection as the “employer”) shall be deemed to be the amount determined by the formula A/B × [2% × (C × D) + 2/3 × (E - F)] where A is (a) the lesser of the total kilometres that the automobile is driven (otherwise than in connection with or in the course of the taxpayer’s office or employment) during the total available days and the value determined for the description of B for the year in respect of the standby charge for the automobile during the total available days, if (i) the taxpayer is required by the employer to use the automobile in connection with or in the course of the office or employment, and (ii) the distance travelled by the automobile in the total available days is primarily in connection with or in the course of the office or employment, and (b) the value determined for the description of B for the year in respect of the standby charge for the automobile during the total available days, in any other case; B is the product obtained when 1,667 is multiplied by the quotient obtained by dividing the total available days by 30 and, if the quotient so obtained is not a whole number and exceeds one, by rounding it to the nearest whole number or, where that quotient is equidistant from two consecutive whole numbers, by rounding it to the lower of those two numbers; C is the cost of the automobile to the employer where the employer owns the vehicle at any time in the year; D is the number obtained by dividing such of the total available days as are days when the employer owns the automobile by 30 and, if the quotient so obtained is not a whole number and exceeds one, by rounding it to the nearest whole number or, where that quotient is equidistant from two consecutive whole numbers, by rounding it to the lower of those two numbers; E is the total of all amounts that may reasonably be regarded as having been payable by the employer to a lessor for the purpose of leasing the automobile during such of the total available days as are days when the automobile is leased to the employer; and F is the part of the amount determined for E that may reasonably be regarded as having been payable to the lessor in respect of all or part of the cost to the lessor of insuring against (a) loss of, or damage to, the automobile, or (b) liability resulting from the use or operation of the automobile. Automobile salesperson (2.1) Where in a taxation year (a) a taxpayer was employed principally in selling or leasing automobiles, (b) an automobile owned by the taxpayer’s employer was made available by the employer to the taxpayer or to a person related to the taxpayer, and (c) the employer has acquired one or more automobiles, the amount that would otherwise be determined under subsection 6(2) as a reasonable standby charge shall, at the option of the employer, be computed as if (d) the reference in the formula in subse