Canada Revenue Agency’s longstanding position is that travel between home and the principal place of business is not deductible. For a Small Business this means that a taxable benefit arises when an employee uses a work vehicle to travel between home and workplace. For a contractor, the travel portion between the house and the principal place of business is not business deductible.
An employee of a Small business or a contractor is required to keep a logbook enabling an objective determination of the business / personal use of the vehicle. The Income Tax Act does not prescribe the documentary requirements for the logbook. With the development of the mobile technologies, we have seen an increase number of Small Business employees and contractors using mobile applications to track their vehicle travel.
The logbook should show the date of the trip, reason for the trip and mileage.
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