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FAQ - 4 November 2015

04 November 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

1. How do I submit bulk third-party data (IT3’s) to SARS?

Q: I have a client that needs to submit about 53 IT3 certificates to SARS.  How do I do this? 

A: These submissions are rather complicated and unfortunately we do not have the requisite expertise to provide you with sufficiently detailed guidance in this area.

SARS have a webpage dedicated to IT3b submissions: http://www.sars.gov.za/ClientSegments/Businesses/Mod3rdParty/Pages/default.aspx 

Aside from submitting via efiling (which limits you to 20 IT3b’s), you can submit via Secure web (HTTPS) or Connect Direct (C: D). Here’s a link to the SARS page dealing with this: 

http://www.sars.gov.za/FAQs/Pages/2207.aspx

There are detailed SARS Guides that provide guidance on these channels: 

Secure web (HTTPS)

http://www.sars.gov.za/AllDocs/OpsDocs/Guides/GEN-ENR-01-G02%20-%20Guide%20for%20Submission%20of%20Third%20Party%20Data%20Using%20the%20HTTPS%20Channel%20-%20External%20Guide.pdf

Connect Direct (C: D)

http://www.sars.gov.za/AllDocs/OpsDocs/Guides/GEN-ENR-01-G01%20-%20Guide%20for%20the%20submission%20of%20third%20party%20data%20using%20the%20connect%20direct%20channel%20%20-%20External%20Guide.pdf

SARS has also provided an email address for persons who need help with these submissions:

datachannel@sars.gov.za

This material will provide you with a good foundation. 

2. Two separate travel allowances, one logbook – how do I claim? 

Q: I have a client who has a Travel Allowance (code3701) and a Use of an Employer Provided Motor Vehicle allowance (code3802) reflecting on his IRP5. Can he claim for both codes? He did keep a log book. 

He mentioned that his insurance, license fees, and maintenance were fully/partially reimbursed by his employer. Must he fill in the amounts?   

A: Point number 4.9.3 of SARS Interpretation Note 72 mentions that: 

"A deduction is not, however, available when an employee is granted the right of use of the employer’s motor vehicle and a travelling allowance in respect of the same motor vehicle. In this situation the employee is not permitted to claim any deduction for business travel against the travel allowance. Any adjustments to taxable income must be made to the cash equivalent of the value of the taxable benefit of the company car under the business use reductions set out in 4.5.2.” 

See http://www.sars.gov.za/AllDocs/LegalDoclib/Notes/LAPD-IntR-IN-2013-05%20-%20IN72%20Right%20of%20Use%20Motor%20Vehicle.pdf 

Para 7(8) of the 7th Schedule requires that the employee bear the full cost of insurance, maintenance, etc in order to get the ‘deduction’ against the company car fringe benefit amount. If the taxpayer was reimbursed by the employer, then he cannot get the applicable deduction.

Please also see SARS IN 14 for more guidance on travel allowances.

http://www.sars.gov.za/AllDocs/LegalDoclib/Notes/LAPD-IntR-IN-2012-14%20-%20Allowances%20Advances%20Reimbursements.pdf

Disclaimer: Nothing in these queries and answers should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answers, SAIT do not accept any responsibility for consequences of decisions taken based on these queries and answers. It remains your own responsibility to consult the relevant primary resources when taking a decision. 




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