S.L. 123.55 Art. 18Value of vehicle allowance.

(1) Subject to the other provisions of this rule the value of the vehicle allowance referred to in rule 17 is the total amount so paid.

(2) Where -

(a) the allowance is paid to an employee in terms of the provisions of a collective agreement or of his contract of service with respect to the use of his vehicle for the purpose of the employer’s business; and

(b) the beneficiary is not a person in a controlling position; and

(c) the employee is not entitled to the private use of another vehicle owned or held under a title of lease by the employer, the value determined in accordance with sub-rule (1) hereof shall be reduced by 50% provided that the maximum total reduction that may be so allowed in any calendar year with respect to any one beneficiary is €1,170.

(3) When a beneficiary is in receipt of a vehicle allowance from more than one employer the maximum total reduction of €1,170 referred to in sub-rule (2) shall apply with respect to the aggregate allowances he receives as if they were one allowance.

(4) An employee who receives a vehicle allowance may claim in his income tax return for a year of assessment a deduction against the value of the benefit determined in accordance with the foregoing provisions of this rule with respect to the expenses he incurred in the year preceding that year of assessment in the use of the vehicle and a deduction for the wear and tear of that vehicle to the extent that such expenses and wear and tear relate to the use of the vehicle for the purpose of his employer’s business and are allowable in terms of article 14 and all the other relevant provisions of the Act, but the maximum deduction that may be so claimed is the amount by which the total of such expenses and wear and tear deduction exceeds the amount of the reduction from the value of the benefit referred to in sub-rules (2) and (3): Provided also that such deductions shall only be allowable if:

(a) the conditions listed in sub-rule (2)(a), (b) and (c) are all satisfied; and

(b) the employee is in possession of documents proving the said expenses and the purpose for which they were incurred; and

(c) the income declared by the employee in his income tax return includes the value of the benefit computed in accordance with the foregoing sub-rules of this rule; and

(d) the claim for the deductions is supported by a computation showing the details relevant to the determination of the amount due as a deduction in accordance with this rule.

(5) The vehicle allowance referred to in rule 17 shall be deemed to have no value if -

(a) the vehicle allowance consists in a reimbursement of costs incurred by the employee in the use of his vehicle for the purposes of his employer’s business; and

(b) such reimbursement is made by reference to the distance actually covered at a rate not exceeding 35 cents per kilometre; and

(c) the employer has logged the details to which any such reimbursement refers, including the purpose, destination and distance of each journey.