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:

"Who is linked to a company under the Income Tax Act 2007"

You are associated with a company if you own 25% or more of its voting interests. You are also associated with a company if a market value circumstance exists and you have a 25% or more market value interest in it. When working out if you are associated with a company, you must consider anything held by someone you are associated with under certain sections of the law, such as sections YB 4 to YB 14. You are treated as holding anything that person holds. This also applies when looking at sections YB 4(1)(b) and (2) to (4), YB 7, YB 8, and YB 10 to YB 14.

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This page was last updated on 5 April 2026 — View changes

Topics:

Money and consumer rights > Taxes

YB 2: Two companies, or

"What makes two companies associated for tax purposes"

YB 4: Two relatives, or

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

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

YB 3Company and person other than company

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.
A company and a person other than a company are associated persons if—
a market value circumstance exists for the company; and
the person has a market value interest in the company of 25% or more.

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.
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.
Repealed

Notes

Section YB 3: substituted, on 1 April 2010, 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 30 March 2025, 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 30 March 2025, 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 29 March 2018, 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 29 March 2018, by section 258 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).