So, in typical contradictory fashion, the CRA has updated their Auto Expense Benefit rates to adjust for inflation. This means if you drive a company vehicle you will have a greater income inclusion (and more taxes to pay) in 2012 & 2013 than you did in 2011. However, the upper limits for interest or lease payments you can deduct with regards to passenger vehicles remains the exact same. The bottom line is where it benefits them, they've recognized inflation. Where it does not benefit them, they pretend it doesn't exist.
C'est la vie!
Automobile Limits
January 2013
| Operating Expense Benefit (amount of benefit per km) | 2011 | 2012 | 2013 |
| Employees [6(1)(k)(v) and Reg 7305.1] | $0.24 | $0.26 | $0.27 |
| Taxpayer employed principally in selling or leasing automobiles [6(1)(k)(v) and Reg 7305.1] | $0.21 | $0.23 | $0.24 |
| Tax-Free Car Allowances (reasonable km reimbursement rates) | | | |
| Provinces [18(1)(r) and Reg 7306] | First 5,000 km: $0.52 km > 5,000 km: $0.46 | First 5,000 km: $0.53 km > 5,000 km: $0.47 | First 5,000 km: $0.54 km > 5,000 km: $0.48 |
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| Automobiles — CCA Cost Limit | | | |
| For the purposes of 13(2), 13(7)(g), 13(7)(h)(iii), 20(4), 20(16.1), 67.3(d)B and 85(1)(e.4)(i) [Reg 7307(1)] | $30,000 (plus applicable federal and provincial sales taxes) | $30,000 (plus applicable federal and provincial sales taxes) | $30,000 (plus applicable federal and provincial sales taxes) |
| Automobiles — Interest Expense Limit | | | |
| For the purpose of section 67.2A [Reg 7307(2)] | $300 per month | $300 per month | $300 per month |
| Automobiles — Leasing Limit | | | |
| For the purpose of 67.3(c)A [Reg 7307(3)] | $800 per month (plus applicable federal and provincial sales taxes) | $800 per month (plus applicable federal and provincial sales taxes) | $800 per month (plus applicable federal and provincial sales taxes) |
