cost-of-the-company-car

General Motors says a CRA decision to ignore longstanding advice the tax agency gave it about how managers should claim company cars isn’t fair, while CRA says the company should move with the times, the Globe and Mail reports.

The CRA told about 350 GM managers they owe thousands of dollars in taxes and interest, dating back to 2008. The tax agency says the company didn’t assign the personal benefit of driving company cars a high enough value.

Read: How to deduct business expenses

The car company says it’s following advice CRA set out in a letter to them in 1982, and the tax agency shouldn’t try to apply new rules retroactively, reports the Globe. The CRA argues that advances in technology have made it easier to track the value of cars, and how much employees used them for personal trips, and GM should have adjusted its claims accordingly.

GM and the CRA are in Federal Court over the dispute.

Read more here.

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Originally published on Advisor.ca

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