176. Provisions in court orders for payment without deduction of tax.

The statutory provision that an agreement for the payment of interest, rent or other annual payment without allowing a deduction of tax is void1 does not in terms apply to court orders2. Weekly, monthly, quarterly or yearly payments made in compliance with a court order are annual payments within the meaning of the Taxes Acts, with the result that they are deductible in computing the payer's income and are income in the recipient's hands for the purpose of higher rate tax or repayment claims