TAX SEASON ( the tips and tricks thread)

[Taxhelp]

Hi there
am looking for some advice re travel claims - we're setting up our business and would rather pay travel claims per km. Firstly, I have no idea what rate is used to calculate the cost? Secondly, I understand we must keep log books, but is there any annual limit on how much mileage you can claim at a per km rate (as opposed to a travel allowance)?
thanks in advance!

Hi Mcarte,

Firstly the rate you use is at your own discretion. To have a reimbursive travel allowance would be a good idea. This means you pay employees per km. traveled. Should you pay at a rate of less than R3.05 per km and the employee travels less than 8000km for business during the year, that would be a tax free reimbursement.

Should you pay more than R3.05 per km or should the employee travel more than 8000km business during the year, you will be able to claim against the allowance on the same basis as with a regular travel allowance. Logbook required etc. There is no limit that you can claim, as long as you can prove it and have a detail logbook.

Regards

[morneuys]

Hey Guys

Speak to a Financial Adviser for a free Consultation, in terms of Investments, Insurance & Tax.
There's no obligation & its our job to stay in the KNOW.
If you need any help in the Cape town area, my details are below.
Feel free to mail me or contact me on the details below:

Morne Uys
Financial Adviser
Liberty : Bishops Court Agency
Mobile: 084 999 3056 | Work: 021 526 1091 | Fax: 086 242 7761
e-mail: morne.uys@liblink.co.za | LinkedIn: MorneUys

[morneuys]

The first & last trip of the day is not TAX deductible though.
ie: home - office/client & vise versa

[morneuys]

Hi Mcarte,

Firstly the rate you use is at your own discretion. To have a reimbursive travel allowance would be a good idea. This means you pay employees per km. traveled. Should you pay at a rate of less than R3.05 per km and the employee travels less than 8000km for business during the year, that would be a tax free reimbursement.

Should you pay more than R3.05 per km or should the employee travel more than 8000km business during the year, you will be able to claim against the allowance on the same basis as with a regular travel allowance. Logbook required etc. There is no limit that you can claim, as long as you can prove it and have a detail logbook.


Regards

The first & last trip of the day is not TAX deductible though.
ie: home - office/client & vise versa

[MegaTesla]

After being assessed for the 2010 tax year it showed that SARS owed me. I never got the money. I thought that the amount was not enough (I know now that R1500 was).

After filing my 2011 return in January 2012 (I'm a provisional taxpayer so had until then) my ITSA (Statement of account) indicated that SARS now owe me R3k for the period "2010/03/01 To 2012/02/02".

It is now 3 weeks later, and still no deposit into my bank account. I TRIPLE checked that my banking details were correct before submitting my return in January.

I just logged onto efiling and had a look at my returns from way back until now. On all of them my banking details are correct, except on 2010 and 2011. In the bank account field lots of the digits have now turned to an X, ie: XXXXXX1234.

Is this normal or not? And is this the reason why SARS never paid me back the last two seasons?

[Celine]

have you submitted all your provisional returns? if you haven't submitted them all then this is probably why SARS haven't paid you. phone the call center and get a status check on your number.

[Celine]

The first & last trip of the day is not TAX deductible though.
ie: home - office/client & vise versa

home to client and client to home is considered business mileage. there is a court ruling on this.

[MegaTesla]

Just a follow up on post #335 above.

I phoned SARS and they told me I had an outstanding return from 2006! I was still a student then but was registered for tax as I got some foreign income in 2004 or 2005. Anyways, why they never told me or indicated it anywhere is a mystery and rather pathetic.

I filed the 2006 return last week and got my 2010-2011 cashback today.

By the way, the XXXXX's in the bank account number is for security when you download archived returns.

[Greg C]

whos medical aid is it.Saying an outright no,is far to quick.Under the current details it is a no,but if you are paying for say an employee,then there are tax consequences in your favour,as they are receiving a fringe benefit,and it is tax deductible to you. BUT ONLY if this is the case. Otherwise absolutely not,

[Greg C]

Primary Rebate R 11 440
Secondary Rebate (Persons 65 and older) R 6 390
Tertiary Rebate (Persons 75 and older) R 2 130

File a dispute. Cite your total income for the year, total tax paid and look for the clause in the act that states what the tax rebate is. If rebate > what you paid, then SARS owes you money.

If the clowns you're dealing with dispute that, escalate. Repeat until success.

Have gone down similar road before and few SARS employees really know the ACT that well, most only follow rules etc etc. CITE and PAYE are merely systems used for tax collection, the final measure is still what you paid vs what the rebate is and anyone who disputes this is welcome to see you in front of the tax arbitrator.

EDIT:
IF the SARS clown tries to throw some of their recommended procedures or guidelines in front of you, tell them to take a hike. The ACt is what rules and their guidelines do not have legal standing to overrule it

[Goliath]

Anybody know if I make a capital gain in my trust and want to distribute it to the beneficiaries, must I distribute the whole gain or can I just distribute part thereof? Thanks in advance..

[Hamster]

Not really the kind of advise this thread is about, but I would wait about 2 or so weeks before filing my return after filing season opens. Just to be sure all the kinks are sorted out in the system

[Goliath]

Not really the kind of advise this thread is about, but I would wait about 2 or so weeks before filing my return after filing season opens. Just to be sure all the kinks are sorted out in the system

I know.. where else? I am almost certain you can only distribute a portion of the gain to the beneficiaries, as I am working out the best tax scenario but would like some confirmation..

Just got knocked R23k tax according to SARS but my financials says I am in a loss for the entity... triple check my submission and I cannot see a fault, completed it correctly.. anybody else having such nice troubles with SARS?

[krono9]

Just got knocked R23k tax according to SARS but my financials says I am in a loss for the entity... triple check my submission and I cannot see a fault, completed it correctly.. anybody else having such nice troubles with SARS?

99% of the mistakes like that at our practice are not SARS mistakes.. usually a income code instead of a loss code being used on the tax return at the end part ... or some tick box not ticked.. or even sometimes the financials that bring forward and incorrect assessed loss... to name a few....

[Goliath]

99% of the mistakes like that at our practice are not SARS mistakes.. usually a income code instead of a loss code being used on the tax return at the end part ... or some tick box not ticked.. or even sometimes the financials that bring forward and incorrect assessed loss... to name a few....

Went to SARS and they did not take the correction of 2011 tax return into account yet.. so hopefully it will be corrected shortly.

2011 return was submitted incorrectly previously but was corrected the following day with ADR1 and supporting docs but they did not take that into account (yet), was still processing.. phew!