Section 93 - Avoidance of income-tax by transactions resulting in transfer of income to non-residents

Deeming rule: Transferor taxed where asset transfer or linked operations cause income payable to a non-resident

Where a transfer of assets (alone or with associated operations) causes income to be payable to a non-resident, income that would have been taxable if received by the transferor is deemed the transferor's income for all tax purposes; capital sums connected to the transfer similarly bring such non-resident income into the transferor's hands. Once taxed under this section, subsequently received amounts are not taxed again. The deeming does not apply if the transferor satisfies the assessing officer that the transfer and associated operations were not undertaken to avoid tax or were bona fide commercial transactions. Definitions clarify 'assets,' 'associated operations,' 'benefit,' 'capital sum,' and tests for 'power to enjoy' income.