CRA says… No Log Book, No Vehicle Expenses!

CRA has amped up their reviewing and auditing of small business and self employed individuals that claim vehicle expenses on their tax returns.   You must have a mileage log, no exceptions.   There is no getting around it.   I personally have had clients be refused their entire vehicle expenses including lease, insurance, maintenance, parking, 407 etc., because they didn’t keep a log.   If you use your Vehicle for business and especially if the vehicle is 100% business you need to keep a record of the following:

  • Your destination address
  • Why you are there
  • Who are you meeting with
  • Number of kilometers per trip

There are now better options.  Talk to us about purchasing an App that goes on your phone and does almost all the work for you. 

If you find yourself stuck without a log book this year here are some ideas to help you put one together.  (This is not fool proof – but if you’re filing your taxes now without a log book you better to be able to prove your expenses are legitimate)

For many persons, the books and records you already retain as part of your normal business operations may be indicative of the presence of and the extent of business driving.

An appointment diary indicating what addresses were visited and why.

A log of service calls might be sufficient.

Purchase or sales invoices may indicate that items were picked up or delivered by your vehicle.

Some extra information that CRA looks for when reviewing a vehicle:

  • whether the person has another vehicle for personal travel,
  • the type of vehicle,
  • the nature of the business and the business travel likely required,
  • who else drives the vehicle (e.g., family),
  • how the vehicle is insured, and
  • Indications of other personal travel.
  • Indications that you are going to and from a place of employment


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