A company has 500 fleet vehicles. These vehicles are assigned to individuals with different roles throughout the company. The majority of the vehicles are used as a tool of trade vehicles, where individuals have no choice but to use the company vehicle to
Author: The Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
Paragraph 7(10) of the Seventh Schedule state that no value shall be applicable to the benefit if: the vehicle is available to and is in fact used by employees of the employer in general; the private use of the vehicle by the employee concerned is infrequent or is merely incidental to its business use; and the vehicle is not normally kept at or near the residence of the employee concerned when not in use outside of business hours; or the nature of the employee’s duties are such that he or she is regularly required to use the vehicle for the performance of those duties outside his or her normal hours of work, and he or she is not permitted to use that vehicle for private purposes other than— travelling between his or her place of residence and his or her place of work; or private use which is infrequent or is merely incidental to its business use. Due that the employees not office bound have the vehicle permanently at their disposal, means that the first 3 bullets are not applicable. The last bullet is also not applicable, as the employees are not regularly required to use the vehicle for performance outside normal hours as they use the vehicle every day within office hours.