914EU companies: discretion to make payment gross
This section has no associated Explanatory Notes
(1)This section applies if—
(a)a company makes a royalty payment and, at the time the payment is made, the company reasonably believes that the payment is exempt from income tax as a result of section 758 of ITTOIA 2005 (exemption for certain interest and royalty payments), but
(b)there is a duty to deduct a sum representing income tax from the payment under section 903(7) or 906 if the payment is not in fact exempt.
(2)The company may make the payment without deducting a sum representing income tax under section 903(7) or 906 (as the case may be).
(3)But if the payment is not in fact exempt from income tax as a result of section 758 of ITTOIA 2005, this Part has effect as if subsection (2) had never applied in relation to the payment.