ChrisF Posted February 26, 2021 Posted February 26, 2021 Uhm .... hypothetically .... (certainly NOT in my budget) but how many Cape Epic entries, and various associated costs are picked up by companies ..... As Savage eluded to .... If your turn-over is R 10 bar, and you have a R100k add budget (as an example) ... accountants knows the limits, the options, legal loopholes .... DieselnDust and Vetplant 2
Shebeen Posted February 26, 2021 Posted February 26, 2021 wait, you mean people buy bicycles using money AFTER tax has been removed? Have you seen how much bikes cost these days, surely no one does that!!! PhilipV and DieselnDust 2
Shebeen Posted February 26, 2021 Posted February 26, 2021 Uhm .... hypothetically .... (certainly NOT in my budget) but how many Cape Epic entries, and various associated costs are picked up by companies ..... As Savage eluded to .... If your turn-over is R 10 bar, and you have a R100k add budget (as an example) ... accountants knows the limits, the options, legal loopholes ....is there a VAT component in the Cape epic entry fee (surely there is)? pretty sure plenty do that route. DieselnDust 1
DieselnDust Posted February 26, 2021 Posted February 26, 2021 is there a VAT component in the Cape epic entry fee (surely there is)? pretty sure plenty do that route. yip and then ride for a charity and pick up further tax deductions ChrisF 1
vanniri Posted February 26, 2021 Posted February 26, 2021 "The marketing fees were not excessive in the generally accepted sense of such term in such matters. These cases make it clear that it is not for the court (or the Commissioner) to say, with the benefit of hindsight, that business expenditure should be disallowed on the basis that it was not strictly necessary, or that it was not as effective as it could have been. If the purpose of the expenditure was to produce expenditure, in the course of trade and the expenditure is not of a capital nature, then that it sufficient.”In our view this statement better describes the current law in this regard. Should read: ...purpose of the expenditure was to produce income... ChrisF 1
Eugene Posted February 27, 2021 Posted February 27, 2021 No.. Travel to work and back is considered private and cannot be claimed. porqui 1
Eugene Posted February 27, 2021 Posted February 27, 2021 Put your company logo on it and call it a sponsorship for marketing.He may just pull it off if he is audited by one of the many incompetent people working there. But if he gets someone with some sense (and there are still many of them there), he'll have a tough time trying to pull it over them. I remember an instance, where a guy bought his son a kart for racing and put his company branding on. He tried to claim it as advertising. The claims were disallowed and penalties levied. I'm not sure if he objected and what the outcome was. ChrisF 1
Eugene Posted February 27, 2021 Posted February 27, 2021 is there a VAT component in the Cape epic entry fee (surely there is)? pretty sure plenty do that route.If he can prove the entry fee to be in the course or furtherance of an enterprise, then there could be a VAT deduction. Then SARS could argue that entering the event can be viewed as "entertainment" and therefore cannot be deducted.
Eugene Posted February 27, 2021 Posted February 27, 2021 yip and then ride for a charity and pick up further tax deductionsHow?
Eugene Posted February 27, 2021 Posted February 27, 2021 (edited) Speak to your accountant .... Know a gent that used a "BMW 1200 GS" as the delivery vehicle for his 25 liter drums of chemicals .... Accountants know the ways and means ....When I was at SARS I assessed a guy for buying a motor cross bike and claiming it as delivery bike. We also laid a criminal charge against the bike shop for stating it was a delivery bike on the invoice, when it wasn't. Luckily for the bike shop, they chose not to prosecute. Current legislation allows for accountants to be held personally liable for taxes in these instances and it opens them up for prosecution. So any accountant offerimg such advice would be risking a lot. Edited February 27, 2021 by Eugene BigDL and ChrisF 2
Steady Spin Posted February 27, 2021 Posted February 27, 2021 When I was at SARS I assessed a guy for buying a motor cross bike and claiming it as delivery bike. We also laid a criminal charge against the bike shop for stating it was a delivery bike on the invoice, when it wasn't. Luckily for the bike shop, they chose not to prosecute. Current legislation allows for accountants to be held personally liable for taxes in these instances and it opens them up for prosecution. So any accountant offerimg such advice would be risking a lot.Yup. Fraud is fraud. Seen the leisure vehicle as a business expense attempt backfire a few times.
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