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(1) Where accommodation is provided by an employer to an employee, the Commissioner-General shall treat any amount deducted by the employer as rent expenditure or the amount paid by the employer for renting of that accommodation as part of the income of the employee and tax that amount in accordance with the Fourth Schedule of the Act.

(2) Sub-regulation (1) does not apply where an employer carries on a timber, mining, building, construction, farming business or petroleum operations and provides accommodation for an employee at a place or site where the field operation of the business is carried out.

(3) Despite sub-regulations (1) and (2), the Commissioner-General shall treat as additional income earned by an employee, any cash payment made by an employer to an employee in lieu of accommodation and tax the amount accordingly.

(4) For purposes of this regulation, an employee is provided accommodation at a place or site where the location of the accommodation is close in proximity to the physical location used for the business or operations, taking into consideration other factors that include the safety of the employee from health hazards associated with the business or operations.