Section YB 15 — Income Tax Act 2007: Exceptions for employee trusts

YB 15 Exceptions for employee trusts Beneficiaries (1) Section YB 6(1) does not apply if— (a) the trust is only for the benefit of employees of an employer; and (b) neither the beneficiary nor any person associated with the beneficiary directly or indirectly controls the trust. Non-corporate settlors (2) For a settlor that is not a company, sections YB 7 , YB 8 , and YB 9(1) do not apply if— (a) the settlor settles property on the terms of the trust only for the benefit of employees of the settlor; and (b) neither the settlor nor any person associated with the settlor directly or indirectly controls the trust. Corporate settlors (3) For a settlor that is a company, sections YB 7 , YB 8 , and YB 9(1) do not apply if— (a) the settlor settles property on the terms of the trust only for the benefit of its employees; and (b) none of the following directly or indirectly controls the trust: (i) the settlor: (ii) a person associated with the settlor: (iii) an executive of the settlor: (iv) a director of the settlor: (v) a person holding a direct voting interest of 25% or more in the settlor: (vi) if a market value circumstance exists for the settlor, a person holding a direct market value interest of 25% or more in the settlor. Persons with power of appointment or removal (4) Section YB 11 does not apply if— (a) the trust is only for the benefit of employees of an employer; and (b) neither the person ( person A ) who has a power of appointment or of removal of a trustee nor a person associated with person A directly or indirectly controls the trust. Defined in this Act: associated person , company , direct voting interest , employee , employer , market value circumstance , market value interest , settlor Section YB 15: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).