Page 32 - GA Maclachlan Tax Guide 2024

CONNECTED PERSON DEFINITION FOR INCOME TAX

Type of taxpayer Connected persons in relation to the taxpayer
Natural person ■ a relative to the third degree – see diagram for guidance
on the meaning of relative
■ a trust of which the natural person or the relative is a
beneficiary
Trust ■ any beneficiary of the trust
■ any connected person in relation to a beneficiary
Connected ■ any other person who is a connected person in relation
person in to the trust
relation to a trust
Members of ■ any other member
a partnership ■ any connected person in relation to any member of the
or foreign partnership or foreign partnership
partnership
Company ■ any other company in the same group of companies,
where a group of companies consists of a controlling
group company that:
◆ directly holds more than 50% of the equity shares or
voting rights in at least one controlled group company,
and
◆ directly or indirectly holds more than 50% of the
equity shares in or voting rights in each controlled
group company
■ any person (but excluding companies) who individually or
jointly with that person’s connected persons holds 20% or
more of a company’s equity shares or voting rights
■ any company who holds 20% or more of a company’s
equity shares or voting rights (but only if no other holder of
shares holds the majority of voting rights in the company)

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