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Income Tax Act 2007

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

YB 12: Partnership and partner

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"What it means to be a partner in a business under the Income Tax Act 2007"

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You are part of a partnership and you are a partner in it. You and the partnership are associated persons. But if you are a limited partner, this rule does not apply to you. If you are a limited partner, you and the limited partnership are associated persons if you own 25% or more of something that belongs to the partnership. When working out if you own 25% or more, you must consider anything owned by someone associated with you, like a friend or family member, as if you owned it. This is because the law says that if you are associated with someone, you are treated as owning anything they own, according to sections YB 2 to YB 11 and YB 14. The same rule applies when working out if you own 25% or more of something, and you are associated with someone under sections YB 2, YB 3, YB 4(1)(b) and (2) to (4), YB 7, YB 8, YB 10, YB 11, and YB 14.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523022.

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

YB 12Partnership and partner

  1. A partnership and a partner in the partnership are associated persons.

  2. Subsection (1) does not apply if the partner is a limited partner. Instead a limited partnership and a limited partner are associated persons if the limited partner has a partnership share of 25% or more in a right, obligation, or other property, status, or thing of the limited partnership.

  3. For the purposes of subsection (2), if a person (person A) and another person (person B) are associated under any of sections YB 2 to YB 11 and YB 14, person A is treated as holding anything held by person B.

  4. For the purposes of subsection (2), if a person (person A) and another person (person B) are associated under any of sections YB 2, YB 3, YB 4(1)(b) and (2) to (4), YB 7, YB 8, YB 10, YB 11, and YB 14, person A is treated as holding anything held by person B.

Notes
  • Section YB 12: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).