Training Bond – SARS Practice

[newcrew]

Training Bond – SARS Practice

Good morning everybody

I am busy with my 2004 tax returns and was wondering if anybody could let me know if the SARS allow training bonds as a deduction against income.

Paid back a training bond of approximately R20 000 last year.

Thanks for the help




:O

[King Red]

Hi there

Hope this helps. The good news is that the SARS did loose a court case where it was argued that training bonds were to be a tax deductable item.

The bad news is that according to my tax consultant who was apparently involved, this provision expired not too long ago. This I found out about a month ago.

Suggestion, just submit the dam thing, sometimes it pays to get a tax consultant to do it for you. If you are a charter pilot there are so many tax deductions I am sure. Just ask around.

Good luck

[WildFrequency]

About 4 years back I succeeded in getting R30000+ back from SARS for a training bond which I had to pay, SARS did not even argue the point of paying me because they recently lost a legal case where it was pointed out that a Training Bond should be taxdeductable.

Unfortuantly the "receiver of our revenue", as King Red metioned, has stopped this practice of allowing Training Bonds to be deducted, for whatever reason.

[Gauteng Pilot]

Holding both a Comm and a Tax degree I can safely say

NO , they dont allow it

They hardly allow any kind of deduction anymore:mad:

[BMM389EC]

I claimed from SARS for the training bond I paid early last year. Got the money back?

[newcrew]

come on guys and girls

has anybody else had a training bond either allowed or disallowed by the SARS ?

thanks to all those who have replied

[Solid Rust Twotter]

Got a letter from SARS stating that a claim I made for a conversion on to type paid for by myself is non deductible as I'm not a salesman working on comission. (:( :mad: :yuk: )

What a load of thieves. If I didn't do the conversion they wouldn't be able to tax me on income I earn from it:mad: :mad: :mad: .

[Deanw]

Ahh, the difference between an expense incurred in the production of income and a capital expense? :suspect:

AFAIK, you can only claim a deduction when more than 50% of your income is derived from commission. :sad:

[Gauteng Pilot]

Yes

Training / conversions is seen as a Capital Expense because it creates a enduring benefit. So no deduction allowed for individuals.

Commision earners are also being hit hard now, and about the only thing they can deduct is entertainment expenses in relation to business entertainment


Companies cant even make provisions for training anymore according to the latest IAS accounting standards being adopted here.