Answer by Wray Rives:
Yes if the corporation (employer) pays for the housing, then the employer gets to take a tax deduction for the cost. The housing is additional compensation to the employee unless it meets all three of the following conditions:
On the employer's business premises. For this exclusion, your business premises is generally your employee's place of work. If lodging is furnished in a foreign country there are special rules.
For the employer's convenience. Whether or not you furnish lodging for your convenience as an employer depends on all the facts and circumstances. You furnish the lodging to your employee for your convenience if you do this for a substantial business reason other than to provide the employee with additional pay. This is true even if a law or an employment contract provides that the lodging is furnished as pay. A written statement that the lodging is furnished for your convenience is not sufficient, but you should document the business purpose for providing the housing.
Condition of employment. Lodging meets this test if you require your employees to accept the lodging because they need to live on your business premises to be able to properly perform their duties. Examples include employees who must be available at all times and employees who could not perform their required duties without being furnished the lodging. If the employee has the option to decline the lodging or receive additional pay in place of the lodging, then you would fail this condition.