CRA did not allow my Motor vehicle expenses claims “resonable allowance”
Back in April I received a review letter for my 2024/2025 Employment expenses as it relates to personal vehicle usage as a condition of employment. My employer provides me with a T2200, yearly. It states the accumulated (year) amount I was reimbursed for my mileage claims that I must submit each month, in order to be reimbursed for my use. It is NOT an allowance, and it’s not automatically sent to me. I have to keep a log and have it signed off at varying levels before I’m paid out. For 2024/2025 the reimbursement is anywhere between $.49-0.56 per KM.
I sent the CRA: logs, my insurance, licencing, repairs, & maintenance receipts. I sent my loan docs with my interest, gas receipts, etc. everything to show my workings.
Within a short period of time, they sent me back a letter stating they are NOT allowing my expenses. They cited I am in receipt of a non-taxable allowance that is REASONABLE. In review of the “reasonable” rate the CRA states on their website this is around $.70 per km, so I’m technically reimbursed below that rate.
I drive a minimum of 250km per month for employment, and I’ve driven as much as 600 km a month. I live in a small town and have a 12km round trip to work and back. In 8 years of owning my vehicle I’ve driven 98,000 km for personal and work. I’m driving an average of 3500 km yearly for work.
I’ve had the same job for 8 years as well. Bought my vehicle new, having paid $63k including my initial lease costs, then 5% interest on my $17,000 risidual at end of lease (vehicle had equity as I paid for 100,000km in depreciation, and used 40,000 km) just sold it for $15k and dropped it on a new one.
I feel like whoever did my review took one look at the 24 logs, 20 odd receipts abd said “not today” and if they actually looked close enough, I am not reasonably reimbursed, or does my T2200 say I receive an allowance.
I’m stumped! I work in government, in a health related field, and I’m one of 1200+ people who claim this yearly. It’s never been an issue, and none of my collegues had the issue either, some in my role 20+ years.
Do I file an objection, or is this a waste of time. I’m on the hook now for nearly $6000 in taxes. On top of the taxes my family already pays because I live in a crappy province where the provincial portion of tax is nearly on far with the federal amount we have to pay. I earn just shy of 6 figures.
Help and opinions are appreciated.