Ownership and income tax: legal background: ownership income follows property - variation
For the starting point in TSEM9160 not to apply there must be a separation of income from property, by way of a valid declaration or deed of trust.
For example, in an interest in possession trust (TSEM1105), the trustees own the trust property, but they are not entitled to the income arising from the property - the beneficiary is. By way of a valid deed, the settlor has specifically given the income from the property to the beneficiary. So the presumption that income follows property does not apply in this instance.
For example, A owns property from which income is received. A wishes to transfer the right to income to B while retaining the legal and beneficial ownership of the property itself. A executes a valid deed assigning the income to B. In law, B is entitled to the income even though A still owns the property. So the presumption that income follows property does not apply in this instance. Note that where the right to income has been transferred and the transfer is not on arm’s length terms the Settlements legislation may apply - see TSEM4200.