Noticed SARS has a little bug in their system, was told that they would fix it during the audit process.
Multiple company provided vehicles.
SARS works on the tax rebate / tax assessment as follows, fringe benefit x business km / total km. However if you are allocated more than one vehicle over the assessment year, then each vehicle has to be loaded with the business KM traveled.
So for example:
Car 1 = fringe benefit x business km / total km
Car 2 = fringe benefit x business km / total km
1) Problem comes in when it does the calculation for each car. You end up getting a rebate assessment well in excess of what the rebate is supposed to be. So again example on some real life figures:
Car 1 = R130 000 x 33km / 66km = R65000
Car 2 = R130 000 x 1324km / 9654km = R17828
2) So one can see that R82828 is well in excess of how the business km traveled should have been audited. Instead I have been told the following should have happened:
Total car = fringe benefit x sum of business km / sum of total km
Total car = R130 000 x 1357km / 9720km = R18149
This is the problem I am sitting with now, my return has been marked for Audit and I have to wait for the guys to fix it before I get a new assessment amount.