(1) Subject to 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 -
(i) living or other accommodation,
(ii) entertainment,
(iii) domestic or other services, or
(iv) other benefits or facilities of whatever nature, and
(b) apart from this section the expense would not be chargeable to income tax as income of the director or employee,
then, sections 112, 114 and 897 shall apply 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 of the expense had been refunded to the director or employee by the body corporate by means of a payment in respect of expenses, and income tax shall be chargeable accordingly.
(2) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with
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