How do you claim your fringe benefit deduction on e-filing?
Tax Bulletin | 15 October, 2009 | Hot Topics:
Dear Reader
Last week Ettiene Retief, our Tax Handbook Editor-in-Chief, received an interesting question about how to claim a fringe benefit deduction on a company car that is used for private purposes if the private travel is les then 10 000km and a logbook is kept. Our subscriber qualified for the deduction, but didn’t know how to claim it on the return using e-filing.
See what Ettiene had to say…
Answer:
Regarding how to disclose it on the IT12 return, the return doesn’t have a specific section for the review of fringe benefit taxable value. However, you should answer yes to "other deductions" on the wizard portion of the return and insert the amount against other source coded 4016.
The reduction of fringe benefit tax liability is at the discretion of SARS. If you don’t agree with SARS’ assessment then you will have to request reasons for the decision and lodge and objection.
You will probably be asked to provide the supporting documents (being the logbook).
Regards
The Tax Team
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Editors note
Fulvia Stoltz
Tax Bulletin Editor
The Tax Bulletin is packed full of tax tips, commentary on changes to the tax landscape and is also an interactive tax forum which aims to help you efficiently manage your taxes and avoid all the traps. It is also a handy reminder of the deadlines which taxpayers have to meet.