IRP5 has more than 8000 km booked on source code 3703?

By Marc Sevitz · Updated 21 November 2013

My employer books my business travel on 3703, however last year I traveled more than 8000 km (11 000 km). This has triggered an audit of my tax return and resulted in me having to pay full tax on the 3703 amount. To my understanding, I should object this and ask my employer to update my IRP5 to 3702, which I then send as a supporting document with my objection. Is this correct?

I have approached my employer, they say they are unable to change my IRP5 and I should simply pay the tax. I believe this is incorrect.

What is the way forward?

TaxTim Marc said:
21 November 2013 at 23:26

You would only pay tax on the 3000km, ie the number over the 8000. Your Employer must change the IRP5 and send you and SARS the updated one. Unfortunately without proof from your employer there is nothing you can do to prove this.

Salary / IRP5

Independent Contractor

Commission

Travel Allowance

Audit / Verification