Can SARS request a logbook for reimburse Kilometers reported against IRP5 code 3703?
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
Code 3703 is used for amounts related to a claim by an employee that was based on the ‘actual distance travelled’ – see section 8(1)(b)(iii) of the Income Tax Act. It then is reasonable to accept that the employer will retain some sort of document supporting the distance travelled, but that this may well not be in the form of a logbook. We submit, where the employee kept a logbook, that it would constitute relevant material. Principally SARS would be able to call for this from the taxpayer as well for review or audit purposes. If no logbook was kept, the taxpayer, or employer’s response, to such a request from SARS would then be to point out that it was not kept and that the only documents available are the ones used for the reimbursement. This would of course have to show the actual distance travelled’ for purposes of the claim.