Due to the current pandemic, travel allowances and company cars, generally speaking, no longer make any sense. Should these benefits still be provided? If so, while the employee is receiving the benefit but is on lockdown, how should this be dealt with from a tax perspective? There is potentially a detriment to the employee’s taxable income, and a cost saving measure for the employer if smart steps are taken.

If your employer provides a travel allowance or company car, but you are on lockdown and are not able to make use of the benefit as is required, this may create an added tax burden for you. Are you in for an unexpected tax liability due to this?

Mariana Stander, ex-KPMG and ex-Deloitte, also headed-up global expatriate management for Hatch Africa. She is the original developer of the modern package structuring tool (PST) and flexible benefits, which creates the link between contracts, employee remuneration and pay slips.

Craig Rocher started his studies at the University of Pretoria studying BCom Accounting Sciences from 2003 – 2006 and then did honours in 2006. In 2007 he started with articles at Deloitte in Sandton for 3 years and then qualified as a CA (SA). He worked as an audit manager at Deloitte after articles and then joined Tax Consulting in 2013. He has been working in the field of employees and corporate tax ever since, being involved in complex tax calculations and tax optimisation planning for both South African tax and non-tax residents.