Transfer of income to non-residents deemed taxable as transferor's income under anti-avoidance provisions for tax purposes.

Clause deems income transferred to non-residents by means of transfers or associated operations to be the income of the transferor where the transferor acquires rights enabling him to enjoy that income or receives capital sums connected with the transfer. Power to enjoy is defined by actual benefit, increase in asset value, entitlement to benefit, powers enabling beneficial enjoyment, or control over application of income. Exceptions allow the Assessing Officer to accept that transactions lacked tax-avoidance purpose or were bona fide commercial dealings.

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