If a taxpayer has code 3703 and the value is R24 468, it implies that this is within the 8000km limit under this code? Would this taxpayer then be obligated to still provide a logbook on submission or if SARS requires supporting documentation?
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
Whilst R24 468 is less than 8 000 times R3.30 (R26 400) it does not imply that the requirements for the use of the simplified were met. They are that:
“…the distance travelled in the vehicle for business purposes during the year of assessment does not exceed 8 000 kilometres, or where more than one vehicle has been used during the year of assessment the total distance travelled in those vehicles for business purposes does not exceed 8 000 kilometres; and
(c) no other compensation in the form of a further allowance or reimbursement (other than for parking or toll fees) is payable by the employer to that recipient,
that rate per kilometre is, at the option of the recipient, equal to 330 cents per kilometre.”
As the claim was based on actual distance travelled and one accepts that the employer retains that we still believe that SARS would be able to call for this from the taxpayer as well for review or audit purposes. A logbook may well be the appropriate way to provide that to SARS.