½Û×ÓÊÓƵ

A travel allowance is an allowance or advance which is granted by the principal to the recipient to use a private vehicle for business purposes. The first exclusion in this respect is provided for under s 8(1)(a)(i)(aa). Broadly speaking, the above provision states that allowances or advances actually expended on travelling on business are excluded from the ambit of s 8(1)(a)(i). The scope of this provision does not apply to an allowance or advance granted in respect of the use of a motor vehicle as a fringe benefit under para 7 of the Seventh Schedule.

The term, 'travelling on business', is circumscribed by the provisions of para (b) of the section. Section 8(1)(b)(i) specifically determines that 'private travel' will fall outside the ambit of this provision, which includes travel between the employee's residence and their place of employment.

Further to this, taxpayers wishing to exclude the cost of business travel must prove the actual distance travelled, which presupposes that accurate written records must be kept of the kilometres travelled for business purposes. SARS' Interpretation Note 14, titled Allowances,