The CRA Is Reviewing Vehicle Expenses: Are You Ready?

Every year, many businesses and self-employed professionals claim vehicle-related expenses. Currently, the Canada Revenue Agency (CRA) is conducting targeted reviews of vehicle expense claims and mileage logs.

Since May 2025, the CRA has no longer systematically sent requests by regular mail. Communications related to your tax account are now delivered electronically through the My Business Account portal.

If you do not check your online account regularly, you could miss an important deadline or find yourself with very little time to gather the required documentation.

What Can the CRA Request?

During a vehicle expense review, the CRA may require various supporting documents, including:

• A compliant mileage log;
• A detailed trip history;
• Expense reports;
• Any documentation supporting the amounts claimed.

The objective is simple: to demonstrate that the expenses claimed are legitimate, properly documented, and compliant with applicable tax rules.

When Documentation Is Incomplete

When a mileage log is incomplete or cannot be produced, the consequences can be significant. Claimed deductions may be reduced or denied, resulting in tax adjustments, interest charges, and in some cases, penalties.

Without a reliable mileage log, many businesses find themselves trying to reconstruct months or even years of travel using bank statements, calendars, or memory alone. It is a time-consuming, costly, and often imperfect process.

It’s Better to Be Ready Before a Request Arrives

The best strategy is not to prepare your documentation when a review occurs, but to maintain a compliant mileage log at all times.

With Odotrack, trips are recorded automatically, reports are generated in just a few clicks, and travel history is stored in a structured manner. This gives you accessible, compliant documentation that is ready to be provided to your accountant or the CRA whenever required.