Car benefits: fasten your seatbelts

"One of the disadvantages of the federal government's idea of ""taxation by consultation"" is that it seems to take longer to enact new legislation. The proposed new rules for taxing automobile benefits is one example. Here is a ball which has been batted around between government and the public several times and still has not come down to earth. Fasten your seatbelts, there may be more to come. IntroductionThe draft legislation released on April 13 contains the details of the government's current proposals on car expenses and benefits. They differ significantly from the last announced position. Finance Minister Wilson has indicated that the release in draft form will provide an opportunity for the Commons Standing Committee on Finance and Economic Affairs (the Blenkarn committee) and other interested persons to comment before the legislation is introduced in Parliament. Accordingly, there may yet be revisions.Notwithstanding the prospect of further changes, the proposed rules generally come into force in 1988. While taxpayers may welcome some of these changes, particularly the increase in the tax-exempt allowance, many must be frustrated that, at this late date, the rules for the current taxation year are not yet finalized."