Taxes Consolidation Act 1997 section 117

Expenses allowances

Section 117 ensures that expense payments made by a body corporate to its directors or employees are treated as taxable income, unless the expenses qualify for deduction under section 114.

• Any sum paid by a body corporate to a director or employee in respect of expenses is treated as a taxable perquisite of their office or employment under section 112, even if not otherwise chargeable to income tax.
• The employee or director may still claim a deduction under section 114 for any expenses incurred wholly, exclusively and necessarily in performing the duties of the office or employment.
• Sums put at the disposal of a director or employee by the body corporate, and subsequently spent by that person, are also treated as expense payments caught by this provision.
• The effect is to prevent salary or other remuneration being disguised as non-taxable expense reimbursements, by bringing all such payments within the charge to income tax.