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Income Tax Act 2007

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

YB 14: Tripartite relationship

You could also call this:

"When you and someone else have a connection to the same third person, you are associated."

Illustration for Income Tax Act 2007

You are associated with another person if you both have a connection to a third person. This connection is made under sections YB 2 to YB 13 of the Income Tax Act 2007. You must follow these rules to see if you are associated with someone. You and another person are associated if they are connected to a third person, and that third person is connected to you. This connection must be under sections YB 2 to YB 13, but not the same section that connects the other person to the third person. For example, if person B is associated with person C under one of these sections, and person C is associated with you under a different section, then you and person B are associated. There is an exception to this rule. If person B is associated with person C under section YB 2, and person C is associated with you under section YB 3, then you and person B are not associated. A limited partnership is treated like a company when applying these rules.

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

YB 14Tripartite relationship

  1. Two persons (person A and person B) are associated persons if—

  2. person B is associated with a third person (person C) under any of sections YB 2 to YB 13; and
    1. person C is associated with person A under any of sections YB 2 to YB 13, excluding the section under which person B is associated with person C.

      1. Subsection (1) does not apply if—

      2. person B is associated with person C under section YB 2; and
        1. person C is associated with person A under section YB 3.

          1. Repealed

          2. For the purpose of applying subsections (1) and (2), a limited partnership is treated as being a company.

          Notes
          • Section YB 14: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section YB 14(1)(a): amended, on (applying for income years beginning on or after 1 April 2011), by section 135(1)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
          • Section YB 14(1)(a): amended, on , by section 120 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
          • Section YB 14(1)(b): amended, on (applying for income years beginning on or after 1 April 2011), by section 135(1)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
          • Section YB 14(1)(b): amended, on , by section 120 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
          • Section YB 14(3) heading: repealed (with effect on 1 April 2009), on , pursuant to section 290 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section YB 14(3): repealed (with effect on 1 April 2009), on , by section 290 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section YB 14(4) heading: inserted (with effect on 1 April 2010 and applying for the purposes of provisions other than the land provisions, for the 2010–11 and later income years, or of the land provisions other than section CB 11, for land acquired on or after 6 October 2009, or of section CB 11, for land on which improvements are begun on or after 6 October 2009), on , by section 100(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
          • Section YB 14(4): inserted (with effect on 1 April 2010 and applying for the purposes of provisions other than the land provisions, for the 2010–11 and later income years, or of the land provisions other than section CB 11, for land acquired on or after 6 October 2009, or of section CB 11, for land on which improvements are begun on or after 6 October 2009), on , by section 100(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
          • Section YB 14(4): amended (with effect on 1 April 2010), on , by section 140(1) (and see section 140(2) and (3) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
          • Section YB 14 list of defined terms limited partnership: inserted (with effect on 1 April 2010), on , by section 100(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).