Gabriel is required to travel throughout Gauteng regularly, in terms of his contract of employment, effective from
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- Gabriel is required to travel throughout Gauteng regularly, in terms of his contract of employment, effective from 1 April 2019. He accordingly received a fixed travel allowance of R105 000 in total for the period from 1 April 2019 to 29 February 2020 and a substance allowance of R 5 000.
- He kept accurate records of business distances travelled but kept no records of fuel and maintenance costs incurred. The total distance travelled from 1 March 2019 to 29 February 2020 amounted to 15 000 kilometres, of which 5 000 were for private purposes. On 5 June 2019, Gabriel was required to attend a business meeting which extended over 2 days. He stayed for 2 nights at a Bed and Breakfast and kept detailed proof of his meals and accommodation. This cost amounted to R2 400.
- Gabriel purchased his vehicle at a cost of R326 000 (including VAT) from a motorcar dealer (a registered VAT vendor) on 16 January 2019.
- Calculate the taxable amount of the allowances to be included in Gabriel's tax calculation for the 2020 year of assessment. For the travel allowance use the deemed costs method.
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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