Links for Truck Owner Operators. Truck News - Per diem pitfalls: Meal expense strategy has drawbacks. There are good reasons why government agencies and many corporations offer a per diem instead of reimbursing employees for travel expenses.
A daily allowance simplifies expense reporting (generally, no receipts required), makes the company's travel and entertainment budget a lot more predictable, and gives employees some latitude about their spending choices while they're on the road. And what the employee doesn't use, he pockets tax-free. For the past few months, we've been talking about how incorporated owner/operators can include a reasonable allowance for meals and travel as part of their overall compensation package. (See the April and May issues or visit www.trucknews.com.) The potential tax savings are significant. Corporations Canada - Frequently Asked Questions - Answers. General Information 1.
What are the benefits of incorporation? Limited liability: potential loss limited to amount invested in the corporation. Perpetual existence: corporation continues on after the death of the individual. Tax advantages: accountants will recommend incorporation once revenues reach a certain point. TaxFactor2009-03_000.pdf (application/pdf Object) Driver Incorporation.