Section 34, The Income Tax Act, 2000

A deduction is allowed for expenses of meals, refreshments or entertainment where—a) the value of the meals, refreshment or entertainment is included in the assessable income of an employee under subsection (1) (m) of section 23; or b) the taxpayer’s business includes the provision of meals, refreshments or entertainment and the persons to whom the benefits am provided have paid consideration for the benefits at arm’s length. c) the expense is in respect of hospitality to export customers.