Common use of Allowance Rates Clause in Contracts

Allowance Rates. The following allowances apply to the Required and Occasional categories: a) $0.50 per kilometre for the first 5000 kilometres within a calendar year. b) $0.45 per kilometre for each kilometre thereafter within the same calendar year. All future kilometre rates for the first 5,000 kilometres will reflect 96% of the maximum applicable Canada Revenue Agency (CRA) per kilometre rate. The rate for annual kilometres in excess of 5,000 will be set five cents ($0.05) below the rate for the first 5,000 kilometres unless the resulting rate exceeds the maximum allowed by CRA in which case the CRA maximum shall be payable. Automobile allowance rates will be updated in accordance with CRA rates and applied January 1 of every year. The following allowances apply to the Required and Occasional categories effective January 1, 2012: a) The maximum per kilometre rate permitted by the Canada Revenue Agency (Effective January 1, 2012) All future kilometre rates for the first 5,000 kilometres will reflect 100% of the maximum applicable Canada Revenue Agency (CRA) per kilometre rate. The rate for annual kilometres in excess of 5,000 will be set five cents ($0.05) below the rate for the first 5,000 kilometres unless the resulting rate exceeds the maximum allowed by CRA in which case the CRA maximum shall be payable. Automobile allowance rates will be updated in accordance with CRA rates and applied January 1 of every year.