Withholding tax deducted from a payment represents:
AAn additional tax on the recipient
BAn advance payment of the recipient's income taxCORRECT
CA penalty for late invoicing
DA tax borne by the payer
ICANTaxationWithholding Tax2021
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Why the answer is B, and why the others tempt you.
Withholding tax is a collection mechanism, not a separate tax. The amount deducted is credited against the recipient's final income tax liability, except where the law makes it a final tax, as with dividends.
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