09 April 2003: No 20/03

TAXATION ON INLAND ACCOMMODATION EXPENDITURE (OLD SUBSISTENCE AND TRAVEL DISPENSATION) 

The policy of the SA Revenue Service in respect of Inland Accommodation Expenditure (IAE) was emended during the 2000 tax year. This was done in terms of the SARS Act Section  8 (1)(a) read with Section 8(1)(c) which states that member’s/employee’s  IAE must be disclosed on the IRP5.

In a previous Bulletin No 88/02 dated 20 October 2002 this was discussed, however the SA Revenue Service has implemented certain amendments to the above mentioned Act. 

 The Department of Defence (DOD) will not deduct any income tax for IAE received by a member/employee during the  specific tax year. The total IAE utilised by an individual will be taken into consideration for income tax purpose by SARS once the yearly income tax returns are submitted. 

This implies that the IAE claims submitted during the tax year will be disclosed on the member/employee during the applicable tax year as follows:

•  Claims regarding flat rate or meal -Full amount taxable on IRP5 and daily allowance exceeding R173.00 per day.   

•  Less than R173.00 per day. -Full amount non taxable on the IRP5

Members/Employees whose claims exceed R173.00 per day per person will be required to retain all receipts in order to prove to SARS at the end of each tax year that the expenses were for official duty.

 Enquiries: Lt Col Leon Bakker (012) 339 5411

 RAINBOW TREK EXERCISE

On 02 April 2003 members of the South African National Defence Force (SANDF) and the French Armed Forces in the Southern Part of the Indian Ocean (FAZSOI) will begin a combined humanitarian relief exercise in Kwazulu Natal. The exercise will end on 12 April 2003.

The aim of Exercise Rainbow Trek is to conduct a multinational humanitarian relief exercise. The exercise scenario makes provision for maritime, air and ground exercises.  Exercises of this nature develop regional co-operation in the field of humanitarian relief operations and also enhance the friendly relations between the SANDF and FAZSOI.

Approximately five hundred soldiers will be involved in the exercise. The SAS Outeniqua, the French frigate FS Nivose and the French beach landing craft La Grandiere will also form part of the exercise.

The exercise will begin with a command post exercise, which will be followed by a field training exercise.  The field training exercise will take place in Richards bay and surrounding areas.