S.L. 123.55 Art. 23Accommodation not constituting a benefit by reason of an employment or office.

Notwithstanding the other provisions of these rules, the accommodation of an individual in immovable property belonging to a company during any financial year of that company, including the use of any furniture situated therein, shall not be deemed to constitute a benefit provided by that company to that individual or to a member of his family by reason of an employment or office if all the following conditions are satisfied -

(a) during that year the company does not carry on a trade or business and does not own any property whatsoever other than -

(i) the immovable property in question;

(ii) any other immovable property which is occupied by an individual as long as all the conditions of this rule are satisfied with respect to that accommodation;

(iii) cash and bank deposits;

(b) during that year the company does not have any liabilities other than by way of long term loans from a bank or a financial institution or from an individual who is directly or indirectly a shareholder in that company;

(c) where the company has any liability referred to in paragraph (b) that liability is not secured in any manner by an associated company;

and -

(i) the creditor is not a debtor of an associated company; or

(ii) the creditor is a bank which is a debtor of an associated company but the bank’s debt in favour of that associated company is not for a long term loan and is not connected with the financing of the loan to the property owning company;

(d) the company does not, for the year of assessment to which that financial year refers, claim any group relief or any deduction with respect to losses incurred in a trade, business, profession or vocation brought forward from any previous year;

(e) the accommodation is provided to a person who is directly or indirectly a shareholder of that company or to members of his family who is, or all of whom are, not employees of the company and not in receipt of any form of remuneration whatsoever from that company.