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Warning: A fabricated logbook is worse than no logbook at all!

by , 11 July 2014
Employees who get a travel allowance must keep an accurate logbook to back up their business travel.

But, the reality is, some employees forget to keep an accurate logbook. As a result, they end up fabricating their logbooks in a bid to avoid SARS penalties.

Big mistake!

A fabricated logbook is worse than no logbook at all.

Read on to find out why so you can warn your employees about this.

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Here's why a fabricated logbook is worse than no logbook at all

If your employee fabricates his logbook and SARS picks it up, he could be charged with the offence of common law fraud and face criminal prosecution, apart from the penalties and interest from SARS for issuing a revised assessment, warns the Practical Tax Loose Leaf Service.

As you can see, fabricating a logbook is a serious offence.

Advise your employees to keep information such as service records, dates of holiday leave, places entertained and fuel stops. He can use these to validate logbook information if SARS queries any item.

In addition, tell your employees to update their logbooks daily and include these details – SARS considers this format to be an accurate logbook

  • Date of travelling;
  • Opening kilometres;
  • Closing kilometres;
  • Total kilometres;
  • Private kilometres;
  • Business kilometres;
  • Business travel details (where, reason for visit, etc.);
  • Actual fuel cost and oil cost; and
  • Actual repairs and maintenance cost.

Insist that your employees carry an accurate logbook to substantiate business travel so they won't become an easy target for SARS penalties. But, mostly importantly, tell them to resist the temptation of fabricating a logbook. It's not worth it…

PS: If you need more information on travel allowances, be sure to check out our report: Your guide to taxing company cars and travel allowances.

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