Please advise on the following: 1. If a driver uses a vehicle from a family relative for business purposes, and the family relative has done an affidavit to allow him use of the vehicle indefinitely, can he claim the motor vehicle expenses of that vehicle
Author: Beatrie Gouws
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
Section 8 of the Income Tax Act, does not limit nor disallow the claim against the travel allowance if the individual does not own the vehicle. Obviously, this can lead to an enquiry by the SARS auditor and perhaps to check that no-one else is claiming on the same vehicle, in which case there would be some questions to answer. In our experience, it is the safest if the logbook provided indicates all the business trips and related kilometres, as well as all the private trips and the related kilometres. However, in practice SARS has accepted detailed information on the business trips and limited information on the private trips. It is essential that each business trip be indicated, the details recorded and the kilometres stated. E.g. Travel to client from office for meeting – date – opening kms – closing kms.