Section 219 | Meaning of “associate” in section 218(2)(e)

(1)This section applies for the purposes of section 218(2)(e).

(2)Two persons are associates in relation to provision made or imposed as between them if at the time of the making or imposition of the provision—

(a)one of them is directly or indirectly participating in the management, control or capital of the other, or

(b)the same person or persons is or are directly or indirectly participating in the management, control or capital of each of the two persons.

(3)Two persons are also associates in relation to any provision if section 217(4) (which applies to provision made or imposed in connection with sales of oil) requires the persons to be treated as controlled by the same person at the time of the making or imposition of that provision.

(4)For the interpretation of subsection (2), see sections 157(1), 158(4), 159(1) , 160(1) and 161(1) (which have the effect that references in subsection (2) to direct or indirect participation are to be read in accordance with provisions of Chapter 2 of Part 4).^F1F2