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<h1>Indemnity for tax withholding protects persons who deduct or pay tax on another's income from liability.</h1> Clause 518 establishes a statutory indemnity for any person who, under the Act, deducts, retains or pays tax in respect of income that belongs to another person, protecting such third-party deductors or payors against liability arising from those acts by ensuring they are indemnified for the deduction, retention or payment effected pursuant to the Act.