Reasonability of km reimbursement

The Income Tax Act and the Excise Tax Act (that's where GST/HST is found) are not the same. They may cross reference each other though.

In the case of reasonability of an allowance this is an interesting question for which I don't have the answer yet.

Is 40 cents a reasonable km reimbursement? In a world where 52 cents is the rate posted by CRA, is 40 cents too low?

Here's the GST/HST Policy #113 R with some background on how GST/HST views reimbursements that are considered taxable and tax free

http://www.cra-arc.gc.ca/E/pub/gl/p-113r/p-113r-e.html

Let me know what you think.  Have you done the math with your own vehicle?  What is it costing you to run a normal vehicle? Not a huge monster truck, we know those cost more, just because there's more rubber on the road

A regular vehicle. What's it costing you per km? And where are you in Canada?