The transfer of assets abroad income tax anti-avoidance provisions applied to arrangements involving property development by a Mauritius company, and the income treated as arising to the appellants under those provisions was not protected by the double tax treaty between the UK and Mauritius.

Two of the appellants (M and EJ) were involved in giving professional advice in relation to an Isle of Man company (SAP), and also a settlement (DGS) the trustees of which held the entire share capital of SAP. DGS was created by the parents of the third appellant (D), who was neither a settlor nor a beneficiary.

A company (ABP) was incorporated in Mauritius, which purchased a UK property in Yarm, instead of SAP as originally planned, and undertook development of the property. The appellants each took out a life policy with Credit Suisse Life & Pensions (Bermuda) Limited (CSLP), paying premiums of £3,000 each. ABP was wholly-owned by CSLP. The appellants’