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Income Tax Act 2007

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

YB 3: Company and person other than company

You could also call this:

“Rules for when a company and a person are considered connected”

You are a company or a person. A company and a person are associated if the person owns 25% or more of the company’s voting shares. This also applies if the person has a market value interest of 25% or more in the company.

If you and another person are associated under certain rules, such as those in sections YB 4 to YB 14, you are treated as owning what the other person owns. This rule also applies to land provisions and certain other sections, including YB 7, YB 8, and YB 10 to YB 14. You need to consider these rules when working out if you and another person are associated.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523003.

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YB 2: Two companies, or

"When two companies have the same owners or are controlled by the same people, they are called 'associated companies'"

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YB 4: Two relatives, or

"Rules for when two relatives are considered associated for tax purposes"

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

YB 3Company and person other than company

  1. A company and a person other than a company are associated persons if the person has a voting interest in the company of 25% or more.

  2. A company and a person other than a company are associated persons if—

  3. a market value circumstance exists for the company; and
    1. the person has a market value interest in the company of 25% or more.

      1. For the purposes of subsections (1) and (2), and if subsection (4) does not apply, if a person (person A) and another person (person B) are associated under any of sections YB 4 to YB 14, person A is treated as holding anything held by person B.

      2. For the purposes of subsections (1) and (2) and the land provisions, if a person (person A) and another person (person B) are associated under any of sections YB 4(1)(b) and (2) to (4), YB 7, YB 8, and YB 10 to YB 14, person A is treated as holding anything held by person B.

      3. Repealed
      Notes
      • Section YB 3: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section YB 3(3): amended, on , by section 137(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
      • Section YB 3(4): amended, on , by section 137(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
      • Section YB 3(5) heading: repealed, on , pursuant to section 258 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section YB 3(5): repealed, on , by section 258 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).