(1) Subject to the exceptions mentioned in section 130, "distribution", in relation to a close company, includes, unless otherwise stated, any such amount as is required to be treated as a distribution by subsection (3).
(2) For the purposes of this section, any reference to a participator includes an associate of a participator, and any participator in a company which controls another company shall be treated as being also a participator in that other company.
(a) Subject to paragraph (b), where a close company incurs expense in or in connection with the provision for any participator of living or other accommodation, entertainment, domestic or other services, or other benefits or facilities of whatever nature, the company shall be treated as making a distribution to such participator of an amount equal to so much of that expense as is not made good to the company by such participator.
(b) Paragraph (a) shall not apply to expense incurred in or in connection with the provision of
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