Search:  
Western Cape Business News
787
VIEWS

Send  Share  RSS  Twitter  09 Aug 2010

FINANCE: Radical Taxation Of Company Cars

 



Recent Western Cape Business News

Proposed amended legislation is in the pipeline that, if passed, will result in radical changes to the taxation of company cars from 1st March 2011, leading to a rethink as to whether it is still a viable fringe benefit.

This is according to Ron Warren, Executive Chairman of payroll software company, NuQ who says that the change that will have the most effect on payrolls under the recently published Taxation Laws Amendment Bill, 2010 and the Taxation Laws Second Amendment Bill, is undoubtedly that made to the taxation of company cars, which will also make the keeping of a log book essential if the employee wishes to get any tax benefit.

Reasons for the change
Warren says that over the last few years, the rules for claiming expenses against a travel allowance have steadily become more restrictive.  In the current tax year the deemed business kilometres travelled concession (those exceeding 18 000 but not exceeding 32 000 kilometres) was repealed, and taxpayers seeking to claim expenses against a travel allowance must now maintain travel log books showing actual business use.

“Similar changes are now to be required for the employer car fringe benefit,” he says.

“Both sets of rules must roughly reach the same outcome so as to prevent ‘arbitrage’, according to the explanatory memorandum on the Bill”.


 
 
 
organic-products-weatern-capemetropolitan-golf-clubBusiness Profilesreal-steelaccommodation-western-cape
 
   
 
 
 
  Accomodation
Accommodation


Online Foreign Exchange
Foreign Exchange


Directory
Directory


Fax
Fax 2 Email


Finance
Finance


Furniture
Furniture


Casino
Online Casino


Restaurant
Restaurant


Auctions
Shop Online


Study IT
Study IT Online


Web design
Web Design


Weddings
Weddings


Work
Work from Home
 
 
 
 
 
Company News
 
 

 

© 2019 www.wcbn.co.za. All rights reserved.

Daily Newsletter Subscription

 

Subscribe to the Western Cape Business News Daily News and information email (it's free).

Thank You
Your email address has been added.

Name:
Email Address: