Taxes Consolidation Act 1997 section 116

Interpretation (Chapter 3)

Section 116 defines key terms used throughout the benefits in kind (BIK) Chapter, including "director", "employee", "employment", "control", and "business premises", and sets out which employments fall within the scope of the Chapter.

• A director includes anyone who manages or effectively controls a body corporate, even if not formally appointed — but professional advisers acting in that capacity are excluded from the definition.
• Employment means a position where earnings are taxable under Schedule E, and an employee includes any person involved in managing the body corporate who is not a director, as well as office holders.
• All directors fall within the BIK Chapter regardless of income level, but employees are only within scope if their total remuneration (including BIK and expenses but before allowable deductions) is €1,905 or more per year.
• Where a group structure exists, employees and directors of a subsidiary are treated as employees or directors of the controlling parent company for the purposes of applying the income threshold.