Income Tax Act 2007 section 993

Meaning of "connected" persons

Section 993 defines when individuals, companies, trustees and partners are treated as "connected" persons for income tax purposes, which can affect how transactions between them are taxed.

• Individuals are connected through marriage, civil partnership or family relationships, including relatives of spouses and civil partners
• Trustees of a settlement are connected to the settlor, persons connected with the settlor, certain close companies linked to the trust, and trustees of related sub-fund settlements
• Partners in a partnership are connected to each other and to the spouses, civil partners and relatives of fellow partners, unless dealings involve genuine commercial transactions in partnership assets
• Companies are connected where the same person or group of connected persons controls both, and a company is connected to any person who, alone or together with connected persons, controls it