Income Tax Regulations (C.R.C., c. 945)

7306. For the purposes of paragraph 18(1)(r) of the Act, the amount in respect of the use of one or more automobiles in a taxation year by an individual for kilometres driven in the year for the purpose of earning income of the individual is the total of

• (a) the product of 46 cents multiplied by the number of those kilometres;

• (b) the product of 6 cents multiplied by the lesser of 5,000 and the number of those kilometres; and

• (c) the product of 4 cents multiplied by the number of those kilometres driven in the Yukon Territory, the Northwest Territories or Nunavut.

• 7307. (1) For the purposes of subsection 13(2), paragraph 13(7)(g), subparagraph 13(7)(h)(iii), subsections 20(4) and (16.1), the description of B in paragraph 67.3(d) and subparagraph 85(1)(e.4)(i) of the Act, the amount prescribed is

  • (a) with respect to an automobile acquired, or leased under a lease entered into, after August 1989 and before 1991, $24,000; and

  • (b) with respect to an automobile acquired, or leased under a lease entered into, after 1990, the amount determined by the formula

    A + B

    where

    A 

    is, with respect to an automobile acquired, or leased under a lease entered into,

    • (i) before 1997, $24,000,

    • (ii) in 1997, $25,000,

    • (iii) in 1998 or 1999, $26,000,

    • (iv) in 2000, $27,000, or

    • (v) after 2000, $30,000, and

    B 

    is the sum that would have been payable in respect of federal and provincial sales taxes on the acquisition of the automobile if it had been acquired, at a cost equal to A before the application of the federal and provincial sales taxes, if the automobile

    • (i) was acquired, at the time of the acquisition, or

    • (ii) was leased, at the time the lease was entered into.

• (2) For the purpose of the description of A in section 67.2 of the Act, the amount prescribed in respect of an automobile that is acquired either after August 1989 and before 1997 or after 2000 is $300.

• (3) For the purpose of the description of A in paragraph 67.3(c) of the Act, the amount prescribed in respect of a taxation year of a lessee is, with respect to an automobile leased under a lease entered into

  • (a) after August 1989 and before 1991, $650; and

  • (b) after 1990, the amount determined by the formula

    A + B

    where

    A 

    is

    • (i) for leases entered into after 1990 but before 1997, $650,

    • (ii) for leases entered into in 1997, $550,

    • (iii) for leases entered into in 1998 or 1999, $650,

    • (iv) for leases entered into in 2000, $700, and

    • (v) for leases entered into after 2000, $800, and

    B 

    is the sum of the federal and provincial sales taxes that would have been payable on a monthly payment under the lease in the taxation year of the lessee if, before those taxes, the lease had required monthly payments equal to A.

• (4) For the purpose of the description of C in paragraph 67.3(d) of the Act, the amount prescribed in respect of an automobile leased under a lease entered into after August 1989 is the amount equal to 100/85 of the amount determined in accordance with subsection (1) in respect of the automobile.