I am having a challenge here were its my first time filling an individual tax return which contains the right of use of a company car. I wanted to find out if the employee has not kept the records of the petrol etc and he doesn't pay insurance etc.
Important:
This answer is based on tax law year ending 28 February 2018.
Answer:
Where the employer owns the vehicle, the taxable value is the 3,5%, or 3,25%, multiplied by the determined value for every month. That assumes that the employer pays all the expenses related to the vehicle. The taxable benefit is then reduced when the employee pays some of the expenses, licence, insurance, maintenance or fuel – see paragraph 7(8) of the Seventh Schedule.
You are correct. The taxpayer is entitled to an adjustment for private travel, or fuel paid by the employee, and in respect of both, the adjustment is done based on the kilometres travelled. That must, in terms of the practice generally prevailing, be based on a logbook.