Income Tax Act, 1967.
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Benefits in kind. |
117.—(1) Subject to the following provisions of this Chapter, where— | |
(a) a body corporate incurs expense in or in connection with the provision, for any of its directors or for any person employed by it in an employment to which this Chapter applies, of living or other accommodation, of entertainment, of domestic or other services or of other benefits or facilities of whatsoever nature, and | ||
(b) apart from this section, the expense would not be chargeable to income tax as income of the director or employee, | ||
Rule 3 of Schedule 2 and sections 110 and 178 shall have effect in relation to so much of the expense as is not made good to the body corporate by the director or employee as if the expense had been incurred by the director or employee and the amount thereof had been refunded to him by the body corporate by means of a payment in respect of expenses, and income tax (including sur-tax) shall be chargeable accordingly. | ||
(2) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, in any of its business premises, of any accommodation, supplies or services provided for the director or employee himself and used by him solely in performing the duties of his office or employment. | ||
(3) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision of living accommodation for an employee in part of any of its business premises which include living accommodation if the employee is, for the purpose of enabling him properly to perform his duties, required by the terms of his employment to reside in the accommodation and either— | ||
(a) the accommodation is provided in accordance with a practice which, since before the beginning of the ten years ending with the passing of the Finance Act, 1958 , has commonly prevailed in trades of the class in question as respects employees of the class in question, or | ||
(b) it is necessary, in the case of trades of the class in question, that employees of the class in question should reside on premises of the class in question, | ||
but this subsection shall not apply where the employee is a director of the body corporate in question or of any other body corporate over which that body corporate has control or which has control over that body corporate or which is under the control of a person who also has control over that body corporate. | ||
(4) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision of meals in any canteen in which meals are provided for the staff generally. | ||
(5) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee himself, or for his spouse, children or dependants, of any pension, annuity, lump sum, gratuity or other like benefit to be given on his death or retirement. | ||
(6) Any reference in this section to expense incurred in or in connection with any matter includes a reference to a proper proportion of any expense incurred partly in or in connection with that matter. |