125.—(1) The Inland Revenue may make a determination that tax is not to be deducted from reserve pay if the Inland Revenue are satisfied that the reservist will not be liable to income tax on the full amount of the reserve pay in a tax year.
(2) For the purpose of making a determination, it must be assumed—
(a)that any reliefs from income tax to which the reservist is entitled are allowable primarily against the reservist’s PAYE income from other sources, and
(b)unless the reservist objects, that the balance (if any) of such reliefs is next allowable against the reservist’s income other than PAYE income.
(3) The Inland Revenue may make a determination before, or at any time during, the tax year.
(4) On making a determination the Inland Revenue must notify the reservist and the Ministry.