YB 2 Two companies
Common voting interests

(1)

Two companies are associated persons if a group of persons exists whose total voting interests in each company are 50% or more.

Common market value interests

(2)

Two companies are associated persons if—

(a)

a market value circumstance exists for either company; and

(b)

a group of persons exists whose total market value interests in each company are 50% or more.

Common control by other means

(3)

Two companies are associated persons if a group of persons exists who control both companies by any other means.

General aggregation rule

(4)

For the purposes of subsections (1) to (3), if a person (person A) and another person (person B) are associated under any of sections YB 4 to YB 14, person A is treated as holding anything held by person B.

Aggregation rule for land provisions

(5)

For the purposes of subsections (1) to (3), if a person (person A) and another person (person B) are associated under any of sections YB 4(1)(b) and (2) to (4), YB 7, YB 8, and YB 10 to YB 14, person A is treated as holding anything held by person B.

Exception for certain government entities

(6)

Subsection (3) does not apply to 2 companies if either or both are—

(a)

a state enterprise:

(ab)

a mixed-ownership enterprise:

(b)

a Crown Research Institute:

(c)

a Crown health enterprise:

(d)

a company that is part of the same group of companies as an entity referred to in any of paragraphs (a) to (c).

Exception for international tax rules

(7)

In the international tax rules, 2 companies are not associated persons if 1, but not both, is a non-resident.

Exception for managed funds

(8)

For the purposes of the land provisions, 2 companies are not associated persons if 1 is a portfolio investment entity or an entity that qualifies for PIE status.

Defined in this Act: associated person, company, Crown Research Institute, group of companies, group of persons, international tax rules, land provisions, market value circumstance, market value interest, mixed-ownership enterprise, non-resident, PIE, portfolio investment entity, state enterprise, voting interest

Section YB 2: 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 2(6)(ab): inserted, on 30 June 2012, by section 11 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).

Section YB 2 list of defined terms mixed-ownership enterprise: inserted, on 30 June 2012, by section 11 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).