Page 35 - SAIT Compendium 2016 Volume2

Rate per kilometre INCOME TAX ACT: REGULATIONS ANd NOTICES Reportable arrangements
2 Determination of rate per kilometre
The rate per kilometre referred to in section 8(1)(b)(ii) and (iii) must, subject to the provisions of paragraph 4, be determined in accordance with the cost scale set out in paragraph 3, and must be the sum of—
(a) the xed cost divided by the total distance in kilometres (for both private and business purposes) shown to have been
travelled in the vehicle during the year of assessment: Provided that where the vehicle has been used for business purposes during a period in that year which is less than the full period of that year, the xed cost must be an amount which bears to the xed cost the same ratio as the period of use for business purposes bears to 365 days;
(b) where the recipient of the allowance has borne the full cost of the fuel used in the vehicle, the fuel cost; and
(c) where that recipient has borne the full cost of maintaining the vehicle (including the cost of repairs, servicing,
lubrication and tyres), the maintenance cost.
3 Cost scale
Where the value of the vehicle —
Fixed cost R
Fuel cost c/km
Maintenance cost c/km
does not exceed R 80 000
26 105
78.7
29.3
exceeds R 80 000 but does not exceed R 160 000
46 505
87.9
36.7
exceeds R 160 000 but does not exceed R 240 000
66 976
95.5
40.4
exceeds R 240 000 but does not exceed R 320 000
84 945
102.7
44.1
exceeds R 320 000 but does not exceed R 400 000
102 974
109.9
51.8
exceeds R 400 000 but does not exceed R 480 000
121 886
126.1
60.8
exceeds R 480 000 but does not exceed R 560 000
140 797
130.4
75.6
exceeds R560 000
140 797
130.4
75.6
4 Simpli ed method for distances less than 8 000 kilometres
Where–
(a) the provisions of section 8(1)(b)(iii) are applicable in respect of the recipient of an allowance or advance;
(b) the distance travelled in the vehicle for business purposes during the year of assessment does not exceed 8 000
kilometres, or where more than one vehicle has been used during the year of assessment the total distance travelled
in those vehicles for business purposes does not exceed 8 000 kilometres; and
(c) no other compensation in the form of a further allowance or reimbursement is payable by the employer to that
recipient,
that rate per kilometre is, at the option of the recipient, equal to 318 cents per kilometre.
5 Effective date
The rate per kilometre determined in terms of this Schedule applies in respect of years of assessment commencing on or after 1 March 2015.
NOTICE SETTING OUT ARRANGEMENTS FOR PURPOSES OF SECTION 76A (1) (a) AND (b)
Promulgated under
GN R180 in GG 27344 of 1 March 2005
By virtue of the power vested in me by paragraphs (a) and (b) of the de nition of ‘reportable arrangement’ in section
76A (1) of the Income Tax Act, 1962 (Act 58 of 1962), I, Trevor Andrew Manuel, Minister of Finance, hereby give notice in—
(a) Schedule A hereto, of arrangements which have been identi ed as not being likely to lead to an undue tax bene t;
and
(b) Schedule B hereto, of arrangements which have certain characteristics that have been identi ed as being likely to
lead to an undue tax bene t.
Schedule A
1 In this Schedule, unless the context otherwise indicates, any word or expression to which a meaning has been assigned in the Income Tax Act, 1962, bears the meaning so assigned.
2 Subject to the provisions of Schedule B and paragraph 3, the following have been identi ed as arrangements which are not likely to lead to any undue tax bene ts (hereinafter referred to as ‘excluded arrangements’):
(a) any loan, advance or debt in terms of which—
(i) the borrower receives an amount of cash and agrees to repay at least the same amount of cash to the lender at a determinable future date; or
(ii) the borrower receives a fungible asset and agrees to return an asset of the same kind and of the same or equivalent quantity and quality to the lender at a determinable future date;
(b) any lease;
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