Tax deduction on employee commission remains mandatory despite private arrangement shifting the burden.

The company remained liable to deduct tax from commission paid to an employee because the amount formed part of the employee's assessable remuneration under the statutory salary scheme. The notices were sufficient as they identified the company through its principal officer, and the description was not invalid merely because the recipient was not named individually. A later explanation to the provision was treated as clarificatory and did not change the pre-existing obligation to deduct tax. A private arrangement under which the employee agreed to bear the tax could not displace the employer-company's statutory duty, so the challenge failed.

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Issues: Whether the company could avoid liability to deduct tax on commission paid to its employee on the ground that the certificate and notices described the recipient as the principal officer of the company and that a private arrangement with the employee shifted the tax burden.

Analysis: The liability to deduct tax arose under the statutory scheme governing salary payments, and the company's own return showed the commission as part of the employee's assessable remuneration. The description in the notices was not confined to a named individual, but identified the company and its principal officer, which was a sufficient description of the person through whom the company acted. The later explanation to the provision was treated as clarificatory and did not alter the substance of the existing obligation. A private arrangement by which the employee agreed to pay the tax directly could not override the statutory duty imposed on the employer-company.

Conclusion: The challenge failed, and the company remained liable under the Act to deduct tax at the appropriate rate.

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