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Income Tax Act 2007

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

YB 16B: Limited partnerships treated as companies

You could also call this:

“Limited partnerships are treated like companies for some tax rules.”

When it comes to the rules about associated people in the Income Tax Act 2007, a limited partnership is treated as a company. This is for the purposes of certain tests, which are in sections YB 2, YB 3, and YB 12(2), (3), and (4), and for section YC 4, the look-through rule for corporate shareholders. This happens if a company is part of the limited partnership, or if the limited partnership is part of another limited partnership, or if another limited partnership is part of the limited partnership, or if the limited partnership has a certain interest in a company.

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

YB 16BLimited partnerships treated as companies

  1. Notwithstanding anything else in this subpart, a limited partnership is treated as a company for the purposes of the tests of association in sections YB 2, YB 3, and YB 12(2), (3), and (4) and for section YC 4 (Look-through rule for corporate shareholders) if—

  2. a company is a limited partner of the limited partnership:
    1. the limited partnership is a limited partner of another limited partnership:
      1. another limited partnership is a limited partner of the limited partnership:
        1. the limited partnership has a voting interest in a company or, if a market value circumstance exists for the company, a market value interest in the company.

          Notes
          • Section YB 16B: inserted (with effect on 26 August 2024), on , by section 142 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).