I move:
That income tax shall be charged for the year 1971-72 or any subsequent year of assessment on income arising from securities and possessions outside the State which is applied outside the State directly or indirectly in or towards the satisfaction, or so that the money or property representing it is available for the satisfaction, of a debt for money lent in the State or interest thereon, or of a debt for money lent outside the State if the money is (whether before or after the income is so applied) received in or brought to the State:
Provided that the provision aforesaid shall have not have effect in relation to income applied in or towards satisfaction of a debt for money lent before the 28th day of April, 1971, or of a debt incurred for satisfying in whole or in part any such debt, unless it is so applied after the year 1971-72.
This is also a tax avoidance measure dealing, in the main, with cases of people who are employed here by foreign companies whose income is received from abroad. The device used is to obtain an overdraft in a bank in this country which is a branch of a bank outside the jurisdiction, to transfer the overdraft from here to outside the jurisdiction, pay it off with the income from outside and thereby avoid the tax for which they would be liable in the normal way within the jurisdiction.
