I had 2 cases now: SARS request supporting documents where the individual received a travel allowance. I've uploaded the travel log books as well as purchase contracts of the vehicles, but SARS then also requested the service records of the vehicles. Is i
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
It is section 29 of the Tax Administration Act that requires of the person (taxpayer) to keep records that will enable the person to observe the requirements of a tax Act and enable SARS to be satisfied that the person has observed these requirements. The Act doesn’t deal with what is necessary to prove this – in other words, how these documents should look and what it should contain. Section 30 explains the form in which record of the documents are to be kept.
As defined in section 1, relevant material means any information, document or thing that in the opinion of SARS is foreseeably relevant for the administration of a tax Act as referred to in section 3. SARS is then entitled to call for the information under section 46 of the Act. We understand that SARS uses the service records for purposes of obtaining additional information relating to the number of kilometres travelled by the taxpayer.
We accept that in this instance, as provided for under section 8(1)(b)(ii) of the Act, the recipient of the allowance is not in a position to furnish “an acceptable calculation based on accurate data” – or didn’t keep accurate records.
One would then respond by saying that, as the individual was not going to base the reduction on accurate data, accurate record of the expenditure was not kept or the supporting vouchers for the actual expenses. It is therefore not available to provide to SARS.