Section YB 1 — Income Tax Act 2007: What this subpart does

YB 1 What this subpart does Associated person rules and nominee rules (1) This subpart sets out the rules that— (a) define when 2 persons are associated persons; and (b) determine how nominees are treated. Other references (2) If a rule in this subpart states that 2 persons are associated persons for 1 or more provisions in this Act, a reference in the relevant provision to persons who are associated with each other includes those persons. Tests (3) The tests of association are categorised as follows: (a) two companies, see section YB 2 : (b) a company and a person other than a company, see section YB 3 : (c) two relatives, see section YB 4 : (d) a person and a trustee for a relative, see section YB 5 : (e) a trustee and a beneficiary, see section YB 6 : (f) trustees with a common settlor, see section YB 7 : (g) a trustee and a settlor, see section YB 8 : (h) a settlor and a beneficiary, see section YB 9 : (i) a trustee and a person with a power of appointment or removal, see section YB 11 : (j) a partnership and a partner, see section YB 12 : (k) two persons who are each associated with the same third person, see section YB 14 . Application (4) The sections in this subpart relating to associated persons apply for the purposes of the whole Act unless a section expressly states otherwise. Loss-attributing qualifying companies and shareholders (5) A special rule provides that a shareholder in a loss-attributing qualifying company and that LAQC are treated as associated persons for the purposes of section DS 4 (Meaning of film reimbursement scheme), see section DS 4(5). Low-turnover traders (6) A special rule applies for the purposes of subpart EB (Valuation of trading stock (including dealer's livestock)) to determine when a low-turnover trader is associated with a company, see section EB 13(2) (Low-turnover valuation). Control interests in foreign companies (7) A special rule applies for the purposes of section EX 3 (Control interests: total of direct, indirect, and associated person interests) to determine when a New Zealand resident is associated with a non-resident relative, see section EX 4(1) (Limits to requirement to include associated person interests). Supplementary dividend holding companies [Repealed] (8) [Repealed] Defined in this Act: associated person , company , loss-attributing qualifying company, low-turnover trader , New Zealand resident , nominee , non-resident , relative , settlor , shareholder , supplementary dividend holding company , trustee Section YB 1: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section YB 1(8) heading: repealed, on 1 April 2011, pursuant to section 119 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section YB 1(8): repealed, on 1 April 2011, by section 119 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).