Restrictions on claiming tax exemptions


If an employee has control over their employer then ALL perquisites, allowances and benefits-in-kind received by that employee will be considered part of their taxable income and they cannot claim any tax exemptions in their respect.


The phrase "control over their employer“ means:

  • For a company, the power of an employee to control is through the holding of shares or the possession of voting power in or in relation to that or any other company, or by virtue of powers conferred by the articles of association or other document regulating that or any other company, that the affairs of the first mentioned company are conducted in accordance with the wish of the employee

  • For a partnership, the employee is a partner of the employer

  • For a sole proprietor, the employee and the employer is the same person.