My client has right of use of motor vehicle, but no log book, so want to draw one up on their behalf? Right of use of motor vehicle a fact as per irp5
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
In terms of section 29 of the Tax Administration Act, a person must keep records, books of account or documents that enable the person to observe the requirements of a tax Act. The requirements of the Act to keep records, books of account or documents for a tax period apply to a person who has submitted a return for the tax period, etc.
According to SARS (in their logbook guide) “it is now compulsory to keep a logbook of all your travel in which you record what travel was for business and what travel was for private purposes if you want to claim a travel deduction.”
Whilst it is the person that must keep the records it doesn’t appear that there is anything preventing that person to use someone else to do so. In fact, it is common for the accounts to be done by someone else. Section 240(1) then allows another person to assist the taxpayer if the other person is a registered tax practitioner.
In terms of the requirement in section 8(1) of the Income Tax Act and the current SARS practice the use of average distances travelled will not meet the requirements. It must be actual distances travelled on business.