Finance Act, 1994

Amendment of section 12 (deductions for tax borne or paid) of Principal Act.

96.—Section 12 of the Principal Act is hereby amended—

(a) in paragraph (a) of subsection (1) by the insertion of the following subparagraph after subparagraph (iiia) (inserted by the Finance Act, 1991 ):

“(iiib) the tax chargeable during the period, being tax for which he is liable by virtue of section 4A (1), in respect of goods received by him,”,

and

(b) in subsection (3)—

(i) in paragraph (a) by the insertion of the following subparagraph after subparagraph (i):

“(ia) expenditure incurred by the taxable person on food or drink, or accommodation or other entertainment services, where such expenditure forms all or part of the cost of providing an advertising service in respect of which tax is due and payable by the taxable person,”,

and

(ii) by the insertion of the following paragraphs after paragraph (b):

“(c) In subparagraph (i) of paragraph (a), reference to the provision of accommodation includes expenditure by the taxable person on a building, including the fitting out of such building, to provide such accommodation.

(d) In subparagraph (ii) of paragraph (a), ‘entertainment expenses’ includes expenditure on a building or facility, including the fitting out of such building or facility, to provide such entertainment.”.