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FAQ - 13 January 2016

Wednesday, 13 January 2016   (0 Comments)
Posted by: Author: SAIT Technical
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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. 

Whilst 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. 

Section 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. 

When 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. 

The 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?

A: SARS 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 CM01 form.

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 (  

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.  





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