175. Avoidance of agreements for payment without deduction of tax.

Every agreement1 for the payment of interest2, rent or other annual payment3 in full without allowing a deduction of tax authorised by the Taxes Acts4 is void5, but only in so far as it stipulates for payment without such deduction6.

Unless the context otherwise requires, the natural meaning of an agreement to pay a specified sum 'free of tax' is that the parties intended that the payer would pay the specified sum after deducting tax, namely as a net sum, and that the gross sum payable would be calculated so as to provide for the payment of such a sum