Section 938 — Income Tax Act 2007: Consequences of reasonable but incorrect belief

Consequences of reasonable but incorrect belief 938 1 This section applies if—

a a payment is made by a company, local authority or qualifying partnership without a sum representing income tax on the payment being deducted from it, b at the time the payment is made, the company, authority or partnership reasonably believes that it is an excepted payment, c one of the duties to deduct sums representing income tax mentioned in section 930(2) would apply to the payment if the company did not so believe, and d the payment is not an excepted payment at the time it is made.

2 This Part has effect in relation to the payment as if section 930(1) had never disapplied the duties to deduct mentioned in section 930(2).