Interpretation Note 72 was issued by SARS on 22 March 2013.
Note provides guidance on the income tax consequences that arise for an
employee when an employer (or an associated institution in relation to
an employer) grants that employee the right of use of a motor vehicle,
commonly known as a "company car fringe benefit”, with specific
reference to the latest legislative amendments to the Fourth and Seventh
Schedules to the Act.
The latest legislative
changes to employer-provided motor vehicles (company cars) are effective
from 1 March 2013 and are applicable to years of assessment commencing
on or after that date (that is, from the 2014 year of assessment).
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.