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Income Tax Act 2007

Definitions and related matters - Associated persons and nominees - Table Y1: Associated person rules

YB 1: What this subpart does

You could also call this:

"This part of the law explains how to determine if two people are associated for tax purposes."

Illustration for Income Tax Act 2007

This part of the law sets out rules to determine when two people are associated. It explains how nominees are treated and categorises the tests of association. You can find more information about the tests in sections like section YB 2, section YB 3, and section YB 4. These rules apply to the whole Income Tax Act unless a specific section says otherwise. There are special rules for certain situations, such as for subpart EB and section EX 3. You can find more details about these special rules in sections like section EB 13(2) and section EX 4(1). The law says that if a rule states two people are associated, they are considered associated for the purposes of the Act. This means that when the law talks about people who are associated with each other, it includes those people. You can find more information about associated persons in the different sections of the law.

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Part YDefinitions and related matters
Associated persons and nominees: Table Y1: Associated person rules

YB 1What this subpart does

  1. This subpart sets out the rules that—

  2. define when 2 persons are associated persons; and
    1. determine how nominees are treated.

      1. If a rule in this subpart states that 2 persons are associated persons for 1 or more provisions in this Act, a reference in the relevant provision to persons who are associated with each other includes those persons.

      2. The tests of association are categorised as follows:

      3. two companies, see section YB 2:
        1. a company and a person other than a company, see section YB 3:
          1. two relatives, see section YB 4:
            1. a person and a trustee for a relative, see section YB 5:
              1. a trustee and a beneficiary, see section YB 6:
                1. trustees with a common settlor, see section YB 7:
                  1. a trustee and a settlor, see section YB 8:
                    1. a settlor and a beneficiary, see section YB 9:
                      1. a trustee and a person with a power of appointment or removal, see section YB 11:
                        1. a partnership and a partner, see section YB 12:
                          1. two persons who are each associated with the same third person, see section YB 14.

                            1. The sections in this subpart relating to associated persons apply for the purposes of the whole Act unless a section expressly states otherwise.

                            2. Repealed

                            3. A special rule applies for the purposes of subpart EB (Valuation of trading stock (including dealer's livestock)) to determine when a low-turnover trader is associated with a company, see section EB 13(2) (Low-turnover valuation).

                            4. A special rule applies for the purposes of section EX 3 (Control interests: total of direct, indirect, and associated person interests) to determine when a New Zealand resident is associated with a non-resident relative, see section EX 4(1) (Limits to requirement to include associated person interests).

                            5. Repealed
                            Notes
                            • Section YB 1: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                            • Section YB 1(5) heading: repealed, on , pursuant to section 172 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                            • Section YB 1(5): repealed, on , by section 172 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                            • Section YB 1(8) heading: repealed, on , pursuant to section 119 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                            • Section YB 1(8): repealed, on , by section 119 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                            • Section YB 1 list of defined terms loss attributing qualifying company: repealed, on , by section 172 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).