Deduction on company provided vehicle acquired under operating lease for the 2012 and 2013 tax years

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • iceedge6050
    New Member
    • Apr 2013
    • 3

    #1

    [Question] Deduction on company provided vehicle acquired under operating lease for the 2012 and 2013 tax years

    Good day,

    I have two questions relating to a fringe benefit received for use of motor vehicle for the 2012 and 2013 tax years.
    The vehicle was a leased car. The employer deducted PAYE on 20% of the fringe benefit;more than 80% of the travel was for business purposes.
    Is the employee not allowed a travel deduction? The IT12 only provides for details to be entered for '' vehicles acquired by the employer by means of any method other than operating lease and the section in the IT12 where you could in previous years enter the deduction against the code 4046(use of motor vehicle) is greyed out.
    If the employee is not able to claim a deduction against the employer provided vehicle, was the employer correct in deducting PAYE on only 20% of the fringe benefit?
  • Andromeda
    Gold Member

    • Feb 2016
    • 734

    #2
    What source code was used on the IRP5? If it was 3802 and/or 3852 then you should not regard it as acquired by an operating lease.

    How sure are you that it was an operating lease, as apposed to a finance lease?

    Comment

    • iceedge6050
      New Member
      • Apr 2013
      • 3

      #3
      Thank you for your response. The fringe benefit was entered against code 3802.The client and employer confirmed that this was an Avis rental car.

      Comment

      • Andromeda
        Gold Member

        • Feb 2016
        • 734

        #4
        The best I can suggest is that you read this analysis on SAICA, because the process changed on 1 March 2015https://www.saica.co.za/integritax/2...mpany_cars.htm

        This paragraph is especially relevant "The impact of a company car on the employee’s tax"

        Comment

        Working...