January 01, 2018
THE TAX COST OF NOT KEEPING A VEHICLE KILOMETRE LOG BOOK
Without a log book for mileage to track business versus personal use, the Canada Revenue Agency (CRA) could deny many tax deductions and claims you have for vehicle usage and result in you paying higher taxes.
CRA requires a detailed log book to substantiate the deductibility of vehicle expenses and will often flag vehicle expenses as a target for audit. It will commonly reject all vehicle claims not supported by a log book.
There also have been numerous taxpayer appeals to overturn rejected claims in which the courts found in favour of CRA when a log had not been kept. Farmers and other self-employed business persons, commissioned employees and individuals in many other occupations have all discovered the financial pain of not keeping a km log book.
THE TAX COST OF NOT KEEPING A VEHICLE KILOMETRE LOG BOOK
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