ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL This change has no implications for the amount of tax due, who pays it or when. It affects (in principle and in practice) only administrative matters. Change 110: Transfer of assets abroad: meaning of “associated operation”: section 719
This change clarifies the meaning of “associated operation” for the purposes of the transfer of assets abroad legislation.
Section 742(1) of ICTA defines “an associated operation” in relation to a transfer as:
“an operation of any kind effected by any person in relation to any of the assets transferred or any assets representing, whether directly or indirectly, any of the assets transferred, or to the income arising from any such assets, or to any assets representing, whether directly or indirectly, the accumulations of income arising from any such assets.”
This definition is ambiguous. It is unclear whether the references to “any such assets” are references only to the assets actually transferred, or to those assets plus any assets representing them.
The punctuation indicates that the latter is the better view, and section 719 of this Act reflects it.
This is a minor change in the law in that it will prevent the taxpayer arguing for the contrary view.