Income Tax.


Trading by 13. (1) Where a person not resident in the Colony (here-
non-residents. inafter in this section referred to as a non-resident person)
 carries on a business with a resident person and it appears to
 the Comptroller that owing to the close connection between
 the resident person and the non-resident person, and to the
 substantial control exercised by the non-resident person over
 the resident person, the course of business between those per-
 sons can be so arranged and is so arranged that the business
 done by the resident person in pursuance of his connection
 with the non-resident person produces to the resident person
 either no profits or less than the ordinary profits which might
 be expected to arise from that business, the non-resident per-
 son shall be assessable and chargeable to tax in the name of
 the resident person as if the resident person were an agent
 of the non-resident person.

 (2) Where it appears to the Comptroller that the true
 amount of the gains or profits of any non-resident person
 chargeable with tax in the name of a resident person cannot
 in any case be readily ascertained, the Comptroller may, if he
 thinks fit, assess and charge the non-resident person on a fair
 and reasonable percentage of the turnover of the business
 done by the non-resident person through or with the resident
 person in whose name lie is chargeable as aforesaid, and in
 such case the provisions of this Ordinance relating to the de-
 livery of returns or particulars by persons acting on behalf
 of others shall extend so as to require returns or particulars
 to be furnished by the resident person of the business so done
 by the non-resident person through or with the resident per-
 son, in the same manner as returns or particulars of income
 to be charged are to be delivered by persons acting for non-
 resident persons:
 Provided that the amount of the percentage shall in
 such case be determined having regard to the nature of the
 business.
 (3) Nothing in this Ordinance shall render a non-
 resident person chargeable in the name of a broker or general
 commission agent, or other agent where such broker, general
 commission agent or agent is not an authorised person carry-
 ing on the regular agency of the non-resid6nt person or a
 person chargeable as if he were an agent in pursuance of sub-
 sections (1) and (2) of this section, in respect of gains or
 profits arising from sales or transactions carried out through
 such a broker or agent.


No. 21.


1967.