The CRA introduced an administrative policy in the late 1980's for reimbursements paid to employees for the use of their personal automobiles. CRA prescribes the following rates as reasonable for 2011:
- 52 cents per km for the first 5000 kms a year (no change from 2010)
- 46 cents per km for any excess (no change from 2010)
- 4 cents more in the Yukon, Northwest Territories and Nunavut
These reimbursements are not taxable, and should not be reported on the T4 slips, if the following conditions are met:...