Leasing legalities

January 2008

On the legislation front, the AARTO saga continued during 2007. Inconsistent application of the law between municipalities remained a problem in terms of ‘re-directing’ or ‘re-issuing’ of traffic fines into the driver’s name.

The major challenge for leasing companies remains the acquisition and maintenance of accurate and complete driver details in respect of all vehicles on fleet. While it is unclear when the AARTO will actually be implemented, it is clear that legal requirements are being more stringently enforced.

No movements occurred in Fringe Benefit Taxation legislation during 2007. However, SAVRALA submitted a letter to the National Treasury requesting a status update on the question raised by SAVRALA in 2006 of the possibility of tax relief being granted for actual business mileage claimed for a company car driver, as is the case for car allowance drivers. No response has been received to date.

Finally, the advent of the National Credit Act in June 2007 had little impact on the leasing industry.