Carpooling is 100% legal in Quebec if he obey two criteria:
1. The driver would have made the trip anyway;
2. The amounts exchanged between driver and passenger must be used to pay the transportation costs, with no benefit.
* The indicative guidelines on eligible expenses when traveling to Canada Revenue Agency indicate that the employee may use his personal vehicle for the purposes of displacement should receive, for the whole distance traveled in the same fiscal year, compensation established as follows: $ 0.54/km for the first 5,000 kilometers driven; $0.48/km for all subsequent kilometers traveled.
At SeatsPlanet, the algorithm takes into account only the cost of gas, maintenance, insurance and registration. Yields a result of approximately $ 0.30/km.
Here is what is written on the transport ministry's website:
In Quebec, we talk about carpooling in the case of "a person who, when she went to his place of LABOUR, STUDIES or the other, or returns, TRANSPORTS others to enable them to to the work or study place or to revert to the condition that the required pay them is only a contribution to the vehicle expenses. Transportation Act. R.S.Q. c. T-12). Any other type of passenger transport does not exactly corresponding to this definition requires a permit from the Quebec Transport Commission (CTQ) under section 36 of the Transport Act, R.S.Q., c. T-12.
Here is another text from the Ministry of Transport website:
I make carpooling offering seats in my vehicle. Do I have to hold a licence?
No. Carpooling not require permits. However, it is important to clarify that paid transport can be carried out under cover of carpooling or commercial carpooling.
First, the concept of commercial carpooling does not exist. In any consideration of a business person in transport by car, a taxi owner's permit is required and the tax rules must be respected.
The Department of Transportation encourages citizens to practice carpooling. According to the Transportation Act, carpooling involves carriage performed on the same journey, when only the transportation costs are shared and that no compensation is required.
Specifically, a driver with car pool also has to move and to personally go to the destination, even if it has no passenger. The passenger transportation becomes secondary to the movement and not the primary purpose of it. Passengers contribute to compensate the driver to use the vehicle, such as sharing petrol costs.
The list of authorities that offer carpooling services. Millions of journeys were made through these platforms without problem for years.
- CAA-Quebec is in partnership with Amigo Express since 2013.
- The Metropolitan Agency of Transport also offers a carpool service.
- The Quebec Automobile Insurance.
Given that, as defined by law, the transfer of money is a share of costs, it is not an income.
According to the Revenue Agency of Canada, any exchange of money resulting carpooling is not taxable. That money does not consist of income and is only considered a reimbursement of basic costs of daily transportation.
There has never been any income claim for carpool income by the Department of Revenue of Quebec, or by the Canada Revenue Agency.