Mr Nghidinwa received a travel allowance of R30,000 for the year. He travelled 18,000 km, including 6,000 km for business purposes. His deemed cost of operating the vehicle is R5.20 per kilometre.
Which statement correctly reflects the tax treatment?

Question

Mr Nghidinwa received a travel allowance of R30,000 for the year. He travelled 18,000 km, including 6,000 km for business purposes. His deemed cost of operating the vehicle is R5.20 per kilometre. 
 Which statement correctly reflects the tax treatment?

Accepted Answer

R30,000 is deductible, resulting in a taxable amount of nil.

Answer

The full R30,000 is taxable because the allowance was paid in cash.

Answer

R1,200 is taxable because the business travel deduction exceeds the allowance received.

Answer

R31,200 is deductible, resulting in a taxable amount of nil.

Crowdly

Mr Nghidinwa received a travel allowance of R30,000 for the year. He travelled 1...

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