PART IX ANNUAL PAYMENTS AND INTEREST
Annual payments
F1349D Section 349A(1): consequences of reasonable but incorrect belief
(1)
Where—
(a)
a payment is made by a company F2or local authority without an amount representing the income tax on the payment being deducted from the payment,
(b)
at the time the payment is made, the company F3or authority reasonably believes that one of the conditions specified in section 349B is satisfied,
(c)
if the company F3or authority did not so believe, tax would be deductible from the payment under section 349, and
(d)
F4none of the conditions specified in section 349B is satisfied at the time the payment is made,
section 350 applies as if the payment were within section 349 (and Schedule 16 applies as if tax were deductible from the payment under section 349).
F5(2)
In this section—
“company” includes a partnership of which any member is a company; and
“local authority” includes a partnership of which any member is a local authority.