FAQ - 13 January 2016
13 January 2016
Posted by: Author: SAIT Technical
Author: SAIT Technical
1. May I claim against a
travel allowance (3702) using a vehicle that I don’t own?
Q: I receive a
travel allowance under code 3702. I used a relative’s car to travel for
official purposes as I do not own a vehicle.
Am I able to claim a deduction in respect of my travel allowance, using
the vehicle belonging to my relative?
A: Code 3702 is used for a
reimbursement for business kilometres exceeding 8 000 kilometres per tax year
or at a rate exceeding the prescribed rate per kilometre or the employee
receives any other form of compensation for travel.
not a tax related issue we understand that the owner of vehicle will not
necessarily be the title holder (it is title holder of a new, pre-owned, built
or re-built motor vehicle, who must register it). So for instance, if the vehicle is financed,
the title holder will be the financing institution.
8(1) doesn’t have the ownership requirement as does for instance section 11(e)
of the Income Tax Act. The SARS guide
doesn’t address this issue either.
the calculation is based on actual cost (accurate data) in respect of a vehicle
that is being leased, ownership or title will not be in the name of the
recipient. In any other case (i.e. not
leased) the wear and tear of that vehicle must be determined over a period of
seven years from the date of original acquisition by that recipient. If the recipient doesn’t furnish an
acceptable calculation based on accurate data and applies the rate per
kilometre (determined by the Minister of Finance by notice in the Gazette for
the category of vehicle used), the notice also requires that the motor vehicle
(not being a motor vehicle leased) was acquired by that recipient under a bona
fide agreement of sale or exchange.
law therefore requires that the vehicle must have been acquired by the
recipient of the allowance or leased.
2. Where can I lodge a
complaint against SARS?
Q: Could you
please provide me with details to which I can address correspondence relating
to SARS service issues?
has recently revamped their complaints facility in an attempt to streamline the
system and improve on how taxpayer complaints are lodged, tracked and resolved
through electronic channels. The Complaints Management Office (CMO) allows
you to submit your complaint via the following channels:
-Manually at a SARS office or mobile tax unit
-By calling them on 0860 12 12 16
-Or by conveniently submitting an electronic form on eFiling
In order to access the Complaints function on eFiling, log
in and navigate to the Services tab. The Complaints option will be
displayed on the left hand menu and you’ll be able to complete and submit the
Please bear in mind that disagreeing with an assessment
does not constitute a complaint. In those situations, one should follow
the regular dispute process of submitting a Notice of Objection (NOO) or
Alternative Dispute Resolution (ADR1). Assessment outcome grievances will
not be entertained by the CMO and your submission will potentially be rejected.
SARS endeavours to resolve a complaint within a maximum
of 21 days after the complaint was lodged. If you remain dissatisfied,
the next step would be to raise your case with the Tax Ombudsman (www.taxombud.gov.za).
Please click here for more info.
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.