The use of car service or taxi from home to work or work to home when there are unusual circumstances and unsafe conditions is not taxable. Employees are required to provide substantiation for the business purpose of the trip (i.e., company or place visited, business reason, pickup and drop-off location, time of trip, name(s) of travellers).
Example 2: Brian must work more than 10 hours until 9:00 PM. Because this is outside of his usual work hours and there is a safety concern in using public transportation late at night, the cost of the car service from work to home is not taxable income to Brian.
Example 3: Jane regularly leaves the office at 6:00 PM and takes a car service to her home. Because there are no unusual circumstances and no unsafe conditions related to this travel event, the cost of the car service will be imputed as income to Jane. As a result, the applicable taxes will be withheld from Jane’s pay to satisfy the taxes due on this imputed amount.