A reservist who objects to tax being deducted in accordance with regulation 124 (deduction at basic rate) must state the grounds of objection.

On receiving the notice of objection, the Inland Revenue must make a determination whether income tax at the basic rate is to be deducted from the reserve pay.

Regulation 125(2) (assumptions) applies for the purpose of making the determination.

The Inland Revenue must notify the reservist of the determination.

The Inland Revenue may amend the determination by agreement with the reservist.

If the Inland Revenue and the reservist do not reach agreement, the reservist may appeal against the determination by giving notice to the Inland Revenue.

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