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Public Office Bearers Allowance of Mayors
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2012/12/03 at 01:50:14 PM GMT
Posts: 3
Public Office Bearers Allowance of Mayors

Afternoon

We have a client who is a Mayor and receives a Public Office Bearers Allowance.

The taxpayer submitted expenses to us to claim against his allowance.  As this is the first time dealing with such a case, we need clarification on whether Municipal Members may in fact submit any claims against there POB allowance.

According to some feedback we received from SARS, Municipal members are fully re-imbursed for all business related expenses and should therefore not be able to claim against their POB allowances.  They are however unable to provide us with anything in writing.

Could anybody please advise me on the correct manner of dealing with this allowance and claims.

Regards

Ancha Ebersohn



2012/12/04 at 06:00:49 PM GMT
Posts: 53

I have copied and pasted the appopriate page of the 2012 SARS guide  for employers which deals with deductions for PAYE purposes .As can be seen a taxpayer may claim for certain  expenditure actually incurred by him/her against such allowance.However this would not include expenditure for which he has been re-imbursed.Hope this helps.

5.3 ALLOWANCE TO A HOLDER OF A PUBLIC OFFICE

Reference to the Act Section 8(1)(d) and 8(1)(f)
Meaning Any allowance granted to the holder of a public office to enable him / her to
defray expenditure incurred by him / her in connection with his / her office, to
have been expended by him / her to the extent that he / she has actually incurred
expenses for the purposes of his / her office in respect of —
 secretarial or duplicating services, stationery, postage or telephone calls;
 the hire and maintenance of office accommodation;
 travelling;
 hospitality extended at any official or civic function which the holder of the
office is by reason of the nature of such office normally expected to
arrange; and

 subsistence and incidental costs incurred.



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