CHAPTER 75:01 - Inland Revenue Division

Income Tax Act Mac 1
Vol. 1
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 commonly prevails 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 the premises of
the class in question,
but this subsection shall not apply where the employee is a director of the
company in question or of any other company over which that company
has control or which has control over that company or which is under the
control of a person who also has control over that company.
(5) Subsection (1) shall not apply to expense incurred by the company in
or in connection with the provision of meals in any canteen in which
meals are provided for the staff generally.
(6) Subject to subsection (6A),subsection (1) shall not apply to expense
incurred by the company in or in connection with the provision for a
director or employee himself or for his spouse, children or dependents,
of any pension, annuity, lump sum, gratuity or other like benefit to be
given on his death or retirement. Act No. 25 of 1992
101 (6A) Subsection (6) shall not apply where the employer contributes to
a fund or contracts with any person to provide the benefit referred to in
that subsection unless the fund or contract is approved by the Board.
(6B) The Board shall not approve a fund or contract to provide such
benefit where -
(a) the total of -
(i) the contributions made in respect of the employee to the fund or
under the contract, as the case may be; and
(ii) any contributions made by the employee to an approved
pension fund plan or approved deferred annuity plan,
exceed one third part of the chargeable income of the employee computed
in accordance with the provisions of this Act before making the
deductions specified in section 20;
101 BIR Note: Sections 6A and 6B effectuve 1st January, 1993
BIR Mac Edition 91/01 Page 141