ARCHIVED CD 2004-009

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July 9, 2004

SUBJECT: Taxable Benefits Related to the Personal Use of Government-Owned Vehicles


1.1 The purpose of this directive is to clarify for client departments the reporting requirements of the taxable benefits derived from the personal use of government-owned vehicles.

1.2 In this text, use of the masculine is generic and applies to both men and women.


2.1 This directive supersedes Services Pay Directives 1980-184 (46) and 1991-008 (05), dated respectively December 31, 1980, and January 17, 1991.


| 3.1 The Treasury Board Directive on Fleet Management: Executive Vehicles (effective November 1, 2006) sets out the policy related to the personal use of Government-owned vehicles.

3.2 While the procedures to report the taxable benefit do not change, the terminology in the present directive will refer to "automobile benefit" rather than "car allowance".


4.1 The automobile benefit will be reported as remuneration at the end of the year in which it is received only for authorized users who are permitted to make personal use of vehicles provided by departments and agencies.

| 4.2. In accordance with section 5.8.1 of the Directive on Fleet Management: Executive Vehicles, authorized users are identified as ministers, ministers of state, secretaries of state, deputy ministers of the Crown, and eligible senior officials.


5.1. Client Department Responsibility

Client departments are required to provide a written notice to report to the pay office the annual automobile taxable benefit amount to be included on the statement of remuneration (T4 and Relevé 1). The written notice should be submitted by the date prescribed by each individual pay office in order for the amount to be reflected on the statement of remuneration.

5.2. Pay Office Responsibility

| On receipt of the client department's written notice for an authorized user who received an automobile benefit, the pay office will credit element 732 (car allowance) by the annual amount reported. It should be noted that element 732 can accept a maximum amount of $9,999.99. Where the car allowance amount exceeds this maximum, a manual T4/Relevé 1 would be required. As this benefit is subject to Canada Pension Plan (CPP) and Quebec Pension Plan (QPP), the pay office must also credit elements 700 (gross earnings) and 706 (CPP earnings) or 707 (QPP earnings) as applicable.


6.1 Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.

Original Signed by
T. Meyers

R. Jolicoeur
Director General
Compensation Sector
Finance, Accounting, Banking and Compensation

Reference(s): CJA 9010-1