Return

When a vehicle is used partially for business purposes and partially for other purposes, the expenses relating to its use must be apportioned. Only those expenses relating to the business travel or commercial activity are considered eligible for a business deduction and for input tax credits on GST/HST. The proration in such cases is done based on the distances driven. To support a deduction or claim, the person must know and be able to demonstrate the distance travelled for business purposes and commercial activities.

This change is a move to increase the efficiency of government while also delivering service and value to taxpayers. This change is also consistent with other leading tax administrations. More than 90% of corporate tax filers produce their returns using commercial software today, so this is about how they transmit the information to the CRA. Having large corporations make use of available technology not only makes good business sense, but it also supports sustainable development.