Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 363: Deductions where credit-token provided
1580.This section applies where goods or services are provided using a credit-token. A deduction may be allowed where the earnings include an amount treated as earnings under section 94(1) and the token is used to obtain goods or services. If the employee would have been allowed a deduction under Chapter 2 or Chapter 5 of this Part if he had paid for the goods or services, a deduction is allowed by this section.
1581.Subsection (1) sets out the conditions which must apply if a deduction from earnings is to be allowed.
1582.Subsection (2) quantifies the amount of the deduction, with the same limit as described for section 362.
1583.The section derives from section 142(2) of ICTA.