I-3 - Taxation Act

Section 41.0.2 Disposition versions

2006-03-01

41.0.2. Where, in a year, an individual is employed principally in selling or leasing automobiles, an automobile owned by the individual’s employer is made available by the employer to the individual or to a person related to the individual, and the employer has acquired one or more automobiles, the reasonable amount corresponding to the value of the right of use determined under section 41.0.1 shall, at the option of the employer, be computed as if

(a)  the reference in the formula therein to 2% were read as a reference to 1.5%, and

(b)  the cost of the automobile to the employer were the greater of

i.  the quotient obtained by dividing the cost to the employer of all new automobiles acquired by the employer in the year for sale or lease in the course of the employer’s business by the number of new automobiles so acquired, and

ii.  the quotient obtained by dividing the cost to the employer of all automobiles acquired by the employer in the year for sale or lease in the course of the employer’s business by the number of automobiles so acquired.

1990, c. 59, s. 38; 1998, c. 16, s. 47.