Local drivers still eligible for meal tax break: CTA

OTTAWA — The Canadian Trucking Alliance (CTA) issued a notice clarifying that local drivers who do not haul beyond a 160 km radius from the home location can continue to make a meal tax deduction claim of 50 percent.

Last month in the federal budget, Ottawa raised the meal tax deductibility for commercial long-haul truck drivers (or the company that reimburses them) to 80 percent from the 50 percent level it has been at since 1994. The phase-in schedule for the increased meal deductibility is 60 percent starting March 19; 65 percent in 2008; 70 percent in 2009; 75 percent in 2010; and 80 percent after 2010.

Local drivers who do not qualify for the full 80 percent, however, will still be eligible for the 50 percent deductions they have been claiming on their tax returns over the years, confirms CTA.

“The Income Tax Act provides a general limitation on the deductibility of meal expenses for all taxpayers to 50 percent; the new provisions for long-haul drivers are written as an exception to this general rule. Whether meal expense deductions are being claimed by long-haul or local drivers, the Canada Revenue Agency will still only allow the deductible percentage to be applied to the lesser of, (a) the amount actually spent or, (b) an amount considered ‘reasonable in the circumstances,'” the CTA states.