SARS Tax Calculation ?

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WhyME

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Hi can someone please explain to me how SARS do their calculations as there is no one from SARS who is able to provide me with answer which makes sense.

SARS asked me to pay an amount of 28 254 which I objected as they had allowed me a deduction of 35 869.00 for travelling which was less by 24 900.00. They then added the 24 900.00 to my traveling which brought it to 60769 allowable deduction for traveling. Now since I was owing them 28 254.00 and they had cheated me with 24 900, I was expecting to be owing them 3 354 but instead I owe them 18 294.00 meaning they only reduced by 9 960.00

I totally don't get the logic???
 
Last edited:
WhyME said:
Edited Version:

I owed SARS 28 254
After Objections SARS added -24 900 to my allowable traveling deductions
SARS tells me I now owe them 18 294 after objection:wtf::wtf:
Click to expand...

Tax scale, my friend. If you earn R50k pm, you get tax'd more on a R1k bonus than if you were earning R10k pm and got a R1k bonus. Figure out what percentage of your travel expenses is taxable, then take that amount and add it to your salary. Then look on the personal tax tables provided by SARS to see how much you should have paid in total.
 
WhyME said:
Edited Version:

I owed SARS 28 254 <- Tax...i.e. after tax tables were applied
After Objections SARS added -24 900 to my allowable traveling deductions <- Taxable Income....i.e. before tax tables were applied
SARS tells me I now owe them 18 294 after objection:wtf::wtf:
Click to expand...

Or explained another way: 9960 / 24900 = 0.4.

40%...sound familiar?

Mystery solved...SARS right as usual.
 
Your travel deduction does not come off your tax, but instead comes off your taxable income. Same goes for medical, RAF etc. After that you still have to apply the tax fraction.
 
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