Company owned vehicle?

About the Author: Wilson Wong & Associates, are Chartered Accountants in Calgary providing tax and accounting services to small and medium sized businesses and high networth individuals.

I often get the question of whether a shareholder can use a vehicle owned by their company. The short answer is yes the company can own the vehicle but the long answer however, is that it's not worth it for the shareholder.

Why not? If it is a passenger vehicle that you use more for personal than for work then a percentage of the value of the vehicle will be attributed back to the shareholder as a non-cash taxable income. There is often misconception that driving from home to work is considered part of work. Not only is going to work/home not considered using a company vehicle for work, but if you go to the same client over and over, that too is considered not for work.

There are ways to reduce the taxable benefit significantly. They are not easy to implement and are often done incorrectly by shareholders not given the proper advice. The best thing to do is to give me a call to help you figure out the best scenario of a company vehicle for your unique circumstances.

Connect with us.

Let's talk!

Leave a message and we'll be in touch within 1 business day