Business Information

Auto expense deduction a highlight of Budget 2008 for CFIB

Measures announced on Feb. 26 by the federal government regarding the auto expense deduction are a real win for CFIB and its members.

The issue first came up when field staff wondered if anything could be done for businesses without employees and the self-employed. In our Mandate survey from August 2007, 82 per cent of respondents said they would like to see the auto expense deduction simplified, as it currently requires a lot of detailed record-keeping. In Budget 2007, the government said it would revisit the deduction, and so CFIB issued an e-mail survey, asking members for more detail on their opinions of the deduction. What emerged from the 7,600 responses received in just one week was that the mileage log needed to support an auto expense claim was far too difficult to keep for an entire year.

As a result of CFIB's work and the participation of its members, in Budget 2008 the government committed to accepting a logbook maintained for "a sample period of time" instead of the full year. In fact, the budget documents state that: "The CFIB has indicated that its members have identified the requirement to keep a logbook as the most burdensome aspect of the motor vehicle tax provisions."

In Budget 2008, the government commits to working with CFIB to fine-tune the changes, which will take effect in 2009.

This is another example of how CFIB members can influence decisions that affect their business.