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Examples of Tax Saving


INPUT FACTORS FOR CLAIM  
Value of vehicle R 195 000.00  
Annual salary R 250 000.00  
Annual travel allowance R 60 000.00  
Odo reading March 1 2007 (kms)               55 000  
Odo Reading Feb 29 2008 (kms)               84 000  
Total annual travel               29 000  
  WITHOUT LOGBOOK WITH LOGBOOK
Annual fixed cost element (SARS table) R 58 334.00 R 58 334.00
Calculated fixed cost element per km R 2.01 R 2.01
Fuel cost element per km (SARS table) R 0.66 0.66
Maintenance cost element per km (SARS table) R 0.44 0.44
Total cost per km R 3.11 R 3.11
CALCULATION OF CLAIM    
Business travel (kms) Unknown              19 000
Private travel (kms) Unknown              10 000
SARS calculated business travel (kms)  limited to 14 000km (no logbook)                11 000              19 000
SARS deemed (no logbook)/calculated (logbook) private travel (kms)               18 000              10 000
Total travel claim calculation (in both cases, limited to travel allowance) R 34 193.69 R 59 061.83
PAYE on travel allowance (assuming 40% tax rate) -R 14 400.00 -R 14 400.00
Taxpayer reduces tax paid by R 19 793.69 R 44 661.83
Difference claimable from SARS using MobileTripSheet logbook NIL R 24 868.14