511. Payments or transfers with prescribed connection.

A payment or a transfer made for, in respect of, or which is in any way derived either directly or indirectly from, the performance of a relevant activity1, has a connection of a prescribed kind with the relevant activity2. This does not, however, apply to:

  1.  

    (1)     a payment out of which a sum representing tax is or falls to be deducted3;

  2.  

    (2)     a payment:

    1.  

      (a)     which falls to be made for the provision of services ancillary to the performance of a relevant activity; and

    2.  

      (b)     which is of an amount or value which does not exceed what would be