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Income Tax Act 2007

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

YB 21: Transparency of nominees

You could also call this:

“Nominees' actions are treated as if you did them yourself”

When someone acts as a nominee for you, it means they do something on your behalf. In this law, if someone is your nominee, it’s treated as if you did the thing yourself, and the nominee is ignored.

A person is your nominee if they act for you. But if someone is a trustee, they’re only considered a nominee if they’re a ‘bare trustee’. This is a special kind of trustee with very limited powers.

If you ask someone to make a small settlement (like a payment or agreement) for you, the law treats that person as your nominee for that settlement.

Remember, this is how the law sees nominees unless there’s a special reason to view it differently in a particular situation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523052.

Topics:
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YB 20: Some definitions, or

“Explains that a former section defining associated person rules no longer exists”

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“This section about the meaning of 'control' has been removed and no longer applies”

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

YB 21Transparency of nominees

  1. In this Act, unless the context otherwise requires, if a person holds something or does something as a nominee for another person, the other person holds or does that thing and the nominee is ignored.

  2. A person holds or does something as a nominee for another person if the person acts on the other person’s behalf. However, a trustee is a nominee only if the trustee is a bare trustee.

  3. A person making a nominal settlement at the request of another person is treated for the purposes of this Act as a nominee in relation to the settlement.

Compare
Notes
  • Section YB 21(3) heading: added (with effect on 1 April 2008), on , by section 121(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
  • Section YB 21(3): added (with effect on 1 April 2008), on , by section 121(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
  • Section YB 21 list of defined terms request: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
  • Section YB 21 compare note: amended (with effect on 1 April 2008), on , by section 564 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).