Section YC 9 — Income Tax Act 2007: Shares or options held by trustees

YC 9 Shares or options held by trustees Trustees treated as notional single person (1) All the trustees of a trust holding a share or an option over a share in a company under the trust are treated as the same notional single person that is— (a) not a company; and (b) separate and distinct from the trustees in their capacities other than as trustees of the trust. Exception to subsection (1) (2) Subsection (1) does not apply if any of the following has a purpose or effect of defeating the intent and application of a continuity provision: (a) the establishment of the trust: (b) the termination of the trust: (c) a change in the trustees of the trust. Change in ownership of corporate trustee (3) Subsection (4) applies if— (a) any share in a company (the first company ) or option over a share in the first company is held by a trustee; and (b) the trustee is a company other than— (i) Public Trust: (ii) any company in which Public Trust holds all voting and market value interests: (iii) a statutory trustee company; and (c) any share in the trustee or option over a share in the trustee is disposed of, issued, or granted; and (d) to the extent to which the disposal, issue, or grant changes the beneficial ownership of the share or option over a share in the first company, unless it can be shown not to have a purpose or effect of defeating the intent and application of any of the continuity provisions. Trustee treated as disposing of share or option (4) The trustee is treated as having disposed of the share or option in the first company, at the time of the disposal, issue, or grant, to an unrelated person and having immediately reacquired the share or option. Avoidance (5) Section GB 5 (Arrangements involving trust beneficiaries) may apply to treat a share or option held by a trustee as being disposed of at the time of a change in trust beneficiaries. Defined in this Act: company , continuity provision , market value interest , share , statutory trustee company , trustee , voting interest , Compare: 2004 No 35 s OD 5(3), (4)