Income Tax Act 2007 section 681AM

Associated persons

Section 681AM defines who counts as an "associated person" for the purposes of the sale and leaseback rules in this chapter, covering individuals acting in concert, reciprocal transactions, corporate reconstructions, and wider family or control relationships.

• Transferors in separate affected transactions are associated if they are acting in concert or if their transactions are in any way reciprocal, and any associate of either transferor is also treated as associated
• Two or more companies are associated if they participate in, or were incorporated for the purposes of, a scheme for the reconstruction or amalgamation of corporate bodies
• Persons are also associated if they fall within the broader definition in section 681DL, which covers relatives, settlements, persons controlling bodies, and joint owners
• An "affected transaction" for these purposes means a transaction caught by sections 681AA or 681AB of ITA 2007, or sections 835 or 836 of CTA 2010, all of which deal with transferors or associates becoming liable for rent or other payments connected with transferred land