Tax wiki
s. 67.3
PART I — Income Tax · DIVISION B — Computation of Income · SUBDIVISION F — Rules Relating to Computation of Income
Limitation re cost of leasing passenger vehicle
Not yet annotated · Text current to 2026-06-21 · section last amended 2004-08-31
Current text
Notwithstanding any other section of this Act, where
in a taxation year all or part of the actual lease charges in respect of a passenger vehicle are paid or payable, directly or indirectly, by a taxpayer, and
in computing the taxpayer’s income for the year an amount may be deducted in respect of those charges,
in determining the amount that may be so deducted, the total of those charges shall be deemed not to exceed the lesser of
the amount determined by the formula
(A × B)/30 - C - D - E
where
is $600 or such other amount as is prescribed,
is the number of days in the period commencing at the beginning of the term of the lease and ending at the earlier of the end of the year and the end of the lease,
is the total of all amounts deducted in computing the taxpayer’s income for preceding taxation years in respect of the actual lease charges in respect of the vehicle,
is the amount of interest that would be earned on the part of the total of all refundable amounts in respect of the lease that exceeds $1,000 if interest were
payable on the refundable amounts at the prescribed rate, and
computed for the period before the end of the year during which the refundable amounts were outstanding, and
is the total of all reimbursements that became receivable before the end of the year by the taxpayer in respect of the lease, and
the amount determined by the formula
(A × B)/0.85C - D - E
where
is the total of the actual lease charges in respect of the lease incurred in respect of the year or the total of the actual lease charges in respect of the lease paid in the year (depending on the method regularly followed by the taxpayer in computing income),
is $20,000 or such other amount as is prescribed,
is the greater of $23,529 (or such other amount as is prescribed) and the manufacturer’s list price for the vehicle,
is the amount of interest that would be earned on that part of the total of all refundable amounts paid in respect of the lease that exceeds $1,000 if interest were
payable on the refundable amounts at the prescribed rate, and
computed for the period in the year during which the refundable amounts are outstanding, and
is the total of all reimbursements that became receivable during the year by the taxpayer in respect of the lease.
Source: Justice Laws Website. Not an official version.
Historic text
This section has not been amended since the start of the point-in-time record on 31 August 2004.
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 67.3 links to the one before it.
Enacting and amending legislation
- R.S., 1985, c. 1 (5th Supp.), s. 67.3; 1994, c. 7, Sch. II, s. 45
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
Referred to in
References are generated from the statutory text and list other sections of the Act only.
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 67.3.