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YB 2: Two companies
or “Rules for when two companies are considered associated for tax purposes”
You could also call this:

“Rules for determining connection between companies and individuals based on voting or market value interests”

A company and a person who isn’t a company are considered connected if you have a 25% or more voting interest in the company. This also applies if there’s a special situation called a “market value circumstance” and you have a 25% or more market value interest in the company.

When figuring out if you have enough interest in the company, the law says to include interests held by people connected to you. These connections are explained in other parts of the law.

If you’re connected to someone in certain ways described in other sections of the law, you’re treated as if you hold what they hold when working out your interest in the company.

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Next up: YB 4: Two relatives

or “Rules for when two relatives are considered associated for tax purposes”
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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), 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), 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 Repealed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      • Section YB 3(5) heading: repealed, on , pursuant to section 258 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).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).