If you receive a standard car allowance from your employer, then it is generally considered to be taxable income. Conversely, monies received from a mileage reimbursement plan are generally not considered to be taxable unless the amount reimbursed is higher than the standard federal rate for mileage deductions
An allowance is any payment that employees receive from an employer for using their own vehicle in connection with or in the course of their office or employment without having to account for its use. This payment is in addition to their salary or wages. An allowance is taxable unless it is based on a reasonable per-kilometre rate. . K; O4 {9 ]# ^( u" J- P: ] ) J* l9 R3 }: J! X% k; @& j+ ]4 V9 |Employees receiving a taxable allowance may be able to claim allowable expenses on their income tax and benefit return.