Originally Posted by
Often1
This scheme creates $100 in income for the employee and a potential bookeeping mess for the employer. If the employer is willing to do this, so be it. But, you can't pocket the $100 extra, have the employer deduct it as a busienss expense and then not report the profit yourself.
How is it different to me getting a really good lease rate on my car, say $100 a month, and claiming $200 in mileage expenses? How someone comes by the vehicle doesn't seem relevant - if I used my mother's car for work, and put in the mileage, is that fraudulent? It still cost me money (gas) and that is the rate deemed 'acceptable' by the company for travelling from A to B for business. IRS / CRA rules may be different, but if your company is reimbursing, surely it doesn't matter?