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Is it required to submit a logbook as proof of deprecation for a motor vehicle

Monday, 10 November 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Is it required to submit a logbook as proof of deprecation for a motor vehicle used for business purposes?

Q: One of our clients has been selected for and Income Tax Audit.  Our client is a Medical practitioner and we have deducted deprecation from the taxable income for the assets related business activities.  The SARS auditor is requesting proof of the deprecation expenses.  We forwarded detailed depreciation schedules (including description of items, date acquired, cost price, depreciation percentage and can also provide invoices of capital goods).  There is however a dispute regarding the deprecation claimed for the motor vehicle used by our client for business purposes.  Apart from the above mentioned the auditor is now also requesting a logbook for the motor vehicle or else the depreciation will be disallowed.  

Our question to you therefore is:  Is it required to submit a logbook as proof of deprecation for a motor vehicle used for business purposes or do we have grounds for an objection?

A: We assume that the client (medical practitioner) is trading in his or her own name, i.e. not in a company.  It is also assumed that the logbook is required because the vehicle has also been used for purposes of private travel, in other words for purposes of section 23(g).  

In the notice of withdrawal of practice notes (with effect from 1 February 2010) SARS indicated that "In line with the amendment to section 8, taxpayers are expected to keep better records. This practice note is withdrawn with effect from years of assessment commencing on or after 1 March 2010” – the reference was to practice note 24.  Section 8 requires that a taxpayer must keep a log book of business (or private) travel and we submit that it is a SARS practice generally prevailing that the adjustment must be made on the basis of a log book.  SARS is generally entitled to ask for a logbook, but we submit that in this instance it was required if there was an element of private use.  

Disclaimer: Nothing in this query and answer 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 answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.



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.

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