PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
JoeSoap
 
Comments: 4
Article views: 954
 
 
Latest Badges:


 
View all JoeSoap's badges.
 

Politicians cheating SARS

08 November 2012, 09:01

The SARS “Guide for Employers in respect of Fringe Benefits (2012)” provides that the following are fringe benefits (amongst others) and hence subject to tax:

·        “The provision of security for the protection of the private home of an employee in the form of the installing of an alarm system, burglar bars or the provision of armed response.” (page 8);

·        A taxable benefit shall be deemed to have been granted where an employee is granted the right of use of any motor vehicle for private or domestic purposes (page 10), the tax is calculated on 3.5% of the cost of the vehicle to the employer per month! The private use of the vehicle includes travelling between the employee's place of employment and place of residence.

·        A taxable benefit shall be deemed to have been granted where the employer has provided the employee with residential accommodation either free of charge or for a rental consideration which is less than the value of such accommodation.

Please note that the Holders of an Office, such as the President, Vice President, Ministers, Provincial Premiers etc, are included in the definition of an employee for the purposes of calculating Employees Tax and Fringe Benefits per the Income Tax Act.

We are now told that the infamous Ministerial Handbook allows for the state to improve security at the private residence of a Minister by R 100 000. Presumably this is then a Fringe Benefit and should be taxed. Similarly spending R 238 000 million on the private residence of a politician should result in tax of R 95.2 million. Just how said politician is going to pay this on a salary of R 2.6 million per year I am not sure.

The Ministerial handbook also allows Ministers to purchase vehicles to 70% the value of their salaries. On R 2.6 million this means R 1.82 million. The tax on this would be R 305 000 per year (R 2.6 million * 3.5% * 12 * 40%). Of course each wife is also entitled to a car and we know that this is also a Fringe benefit as the providing of a benefit to a relative is also taxed. With 4 wives this implies a tax burden of at least R 1.2 million giving a total tax on the use of cars as R 1.5 million per year. This is also difficult to pay on a salary of R 2.6 million.

Then of course there is housing. This is also taxed, as are holidays, medical benefits, airplane tickets, food, free services etc.

This scenario does not just apply to the President but every holder of an office in the country regardless of which political party they come from. As an employee you and I are taxed on everything our employer does for us or pays us. Why should politicians be allowed to party at our expenses? If these items are not taxed, either because the law does not allow for it or SARS does not collect it, then why should you and I be taxed on these items if we can get our employer to give them to us?

So the question to SARS must be: are you collecting the tax on these benefits? If not, why not? How can you ask me to pay my taxes honestly when you are allowing the rich and powerful to get away with paying next to nothing?  Tax it seems to me is a way that politicians and the rich milk the middle classes and the poor (think of VAT). All that SARS does is act as the debt collectors and enforcers of the already rich and powerful. You and I Jack, are screwed.

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.
 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
Siebert Mazus
References for claims?

This question refers to a comment made by Toby Strong, an evangelical Christian, in the article 'The Good News for the world' appearing on news24.com/MyNews2. Read more...

3 comments 23 views
Submitted by
Chris Khanye
The South Africa Parliament has l...

Today, South Africa Parliament cannot conscientiously claim to be a representative of the ‘People’. Read more...

4 comments 231 views
Submitted by
John Myburg
Numsa exposed

We, concerned members within NUMSA, chose to expose role-players involved in an underground plot to destabilise South Africa.  Read more...

5 comments 258 views
Submitted by
Terence Wessels
Zuma must stay!

This guy has managed to do more damage to the ANC in five years, than anyone or anything before him. Read more...

43 comments 2390 views
Submitted by
MikeFraser
The writing is on the wall

South Africans are taking back their power. Read more...

12 comments 901 views
Submitted by
Colleen
Death and beyond

When I was still a very young child and first became aware of death, my reaction was not one of fear, but one of curiosity with a sense of looking forward to one day when I die and finding out what it’s all about Read more...

187 comments 1492 views

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

20% off ALL TV Series

Choose from 1000’s of the hottest TV Series . While stocks last. Shop now!

Festive gifts!

Check out our awesome range of festive gifts to make everyone’s wishes come true. Shop now!

Seen something you like in our catalogue?

Find the perfect gift and save up to R5000 – As seen on the catalogue. Hurry and shop now!

Save up to R2200 on electronics! – As seen in the catalogue

Wishing for tech gadgets this festive? Save up to R2100 on hot tech products at kalahari.com. While stocks last. Shop now!

Up to 35% off books

Save up to 35% on the latest page-turners. While stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

Calais Website keywords automated by OpenCalais.

 
Interactive Advertising Bureau
 
© 2014 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.