Commentary on Sections Overview Chapter 10: Deduction from non-commercial payments by companies Section 928: Chargeable payments connected with exempt distributions
2838.This section requires the deduction of sums representing income tax from chargeable payments connected with exempt distributions. It is based on sections 4, 214(1) and 349(1) of ICTA.
2839.Section 214(1) of ICTA makes provision concerning payments made by a company after an exempt distribution (such as a demerger that meets the conditions in section 213 of ICTA). The other provisions of sections 213 and 214 of ICTA are basically concerned with corporation tax.
2840.The section makes it explicit that the rate at which deduction must be made is the basic rate.