Originally Posted by The Lev

Almost everyone in our organisation is paid for mileage rather than a "car allowance" - it is much simpler from a record keeping point of view and prevents hassles with Revenue Canada since car allowances are considered taxable income unless one goes through a ton of hoops recoding all expenses and all mileage.

Mileage paid out as follows:
- First 5,000 km: $0.41 per km
- 5,001 - 50,000 km: $0.36 per km
- anything over 50,000 km: $0.17 per km

We do have a very small number of people on a car allowance and they are paid $450 per month plus $0.15 per km.