Income Tax Act 2007

YB 4 Two relatives

• Degree of relationship

  (1) Two persons are associated persons if —

  • (a) they are within 2 degrees of blood relationship:

  • (b) they are married, in a civil union, or in a de facto relationship:

  • (c) 1 person is within 2 degrees of blood relationship to the other person's spouse, civil union partner, or de facto partner.

  Exception: blood relationships

  (2) For the purposes of the land provisions and sections EB 13 (Low turnover valuation) and EC 5 (Transfer of livestock because of self-assessed adverse event), subsection (1)(a) and (c) does not apply, and persons are associated persons because of a blood relationship only if 1 is the infant child of the other.

  Treatment of adoption

  (3) For the purposes of this section, a child by adoption is treated as a natural child of the adoptive parents and not as a natural child of the birth parents.

  Exception

  (4) A person is not associated with another person under this section if the person cannot reasonably be expected to know that—

  • (a) the other person exists:

  • (b) the person is within 2 degrees of blood relationship to the other person.

  Defined in this Act: associated person, land provisions

  Section YB 4: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).