Income payable net of tax: payer-bearing tax requires grossing up so withholding yields the payee's agreed net amount. Where an agreement requires the payer to bear tax on specified income, the income must be increased for deduction purposes so that, after tax is deducted at applicable rates for the financial year, the net amount payable under the agreement equals the recipient's contractual payment; this implements a mandatory grossing-up mechanism for withholding.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Income payable net of tax: payer-bearing tax requires grossing up so withholding yields the payee's agreed net amount.
Where an agreement requires the payer to bear tax on specified income, the income must be increased for deduction purposes so that, after tax is deducted at applicable rates for the financial year, the net amount payable under the agreement equals the recipient's contractual payment; this implements a mandatory grossing-up mechanism for withholding.
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