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Income Tax Act 2007

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

YB 13: Look-through companies and holders of interests

You could also call this:

"Rules about companies and who owns what when people are connected to each other"

You are associated with a look-through company if you are a director or employee of that company and have a look-through interest in it. A look-through company and a person with an effective look-through interest of 25% or more in the company's rights or property are also associated persons. If you and another person are associated under certain rules, such as those in sections YB 2 to YB 11 and YB 14, you are treated as holding anything the other person holds.

If you and another person are associated under specific rules, including YB 2, YB 3, YB 4(1)(b) and (2) to (4), YB 7, YB 8, YB 10, YB 11, and YB 14, you are treated as holding anything the other person holds for the purposes of certain rules, including the land provisions.

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YB 12: Partnership and partner, or

"Rules about partnerships and how they affect your taxes"

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YB 14: Tripartite relationship, or

"Being associated with someone means you both know a third person, which affects tax rules."

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

YB 13Look-through companies and holders of interests

  1. A look-through company and a person who has a look-through interest for the look-through company and is a director or employee of that company are associated persons.

  2. A look-through company and a person who has an effective look-through interest of 25% or more in a right, obligation, or other property, status, or thing of the look-through company are associated persons.

  3. For the purposes of subsection (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 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) and the land provisions, 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 13: inserted, on (applying for income years beginning on or after 1 April 2011), by section 134(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
  • Section YB 13 heading: amended (with effect on 1 April 2011), on , by section 139(1) (and see section 139(7) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section YB 13(1) heading: replaced (with effect on 1 April 2011), on , by section 139(2) (and see section 139(7) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section YB 13(1): replaced (with effect on 1 April 2011), on , by section 139(2) (and see section 139(7) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section YB 13(2) heading: replaced (with effect on 1 April 2011), on , by section 139(2) (and see section 139(7) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section YB 13(2): replaced (with effect on 1 April 2011), on , by section 139(2) (and see section 139(7) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section YB 13(3) heading: amended (with effect on 1 April 2011), on , by section 139(3) (and see section 139(7) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section YB 13(3): amended, on , by section 139(4) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section YB 13(4) heading: amended (with effect on 1 April 2011), on , by section 139(3) (and see section 139(7) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section YB 13(4): amended, on , by section 139(5) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section YB 13 list of defined terms land provisions: inserted, on , by section 139(6) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).