Tax gross-up requirement: payers must increase taxable income so post-withholding net payable equals the agreed net amount. Where an agreement requires the payer to bear the tax on specified income, the income for deduction at source must be grossed up so that, after deduction of tax at the rates in force, the net amount payable equals the contractual net payment.
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Provisions expressly mentioned in the judgment/order text.
Tax gross-up requirement: payers must increase taxable income so post-withholding net payable equals the agreed net amount.
Where an agreement requires the payer to bear the tax on specified income, the income for deduction at source must be grossed up so that, after deduction of tax at the rates in force, the net amount payable equals the contractual net payment.
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