AMTA  E-News

February 2010

Feds Increase Meal Deductibility to 75%

New Year Brings Next Installment of Meal Deductibility Relief for Long Haul Truck Drivers

On January 1, 2010, the Department of Finance increased the tax deductible portion of meal expenses for long-haul truck drivers from 70 per cent to 75 per cent for eligible expenses incurred in 2010. This tax relief step¸ as part of the federal
government’s 2007 budget commitment to gradually restore the meal tax deductibility for long-haul truck drivers to 80 per cent by 2011. The move brings Canadian truck drivers one step closer to enjoying the same meal deduction allowances as their US peers. This change also applies to companies that reimburse driver expenses.

CTA CEO David Bradley said he is “extremely pleased that despite the fact that the Minister of Finance and the Government of Canada are under increasing fiscal pressure, they are continuing to honour this commitment.” The deductible portion will increase to 80 per cent for expenses incurred after 2010, said a press release from the Department of Finance.
Bradley said he is also “proud of the role that our 2006-2007 lobby campaign, which called upon the government to End Canada’s Lunch Bag Let Down and which featured postcards that truck drivers sent to the federal finance minister, played. As we enter 2010, long-haul drivers are once again benefiting from lower taxes as a result of this campaign and the tax changes that it achieved.”

“Long-haul truck drivers are some of our country’s hardest-working people,” said Minister Flaherty in a press release. “They play a pivotal role in our economy as they transport goods across the country and across our borders. Our Government is pleased to support their important work by providing tax relief to these hard-working individuals.”

In order to be eligible for the tax deductibility drivers must be away for at least 24 consecutive hours and the purpose of the trip must be to transport goods beyond a 160 km radius from the home location. In addition the vehicle must have a GVWR of greater than 11,788 kg.