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What is the maximum deductible for car allowance paid to employees?

For 2007, a company can deduct as a mileage allowance paid to employees, $0.50/km for the first 5,000 kilometres, and $0.44/km thereafter. Any excess amount is not deductible.

For 2008, a company can deduct as a mileage allowance paid to employees, $0.52/km for the first 5,000 kilometres, and $0.46/km thereafter. Any excess amount is not deductible.

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