Section 5, The Goods and Services Tax Act, 2009

(1) Persons are “related persons” if– (a) they are officers or directors of one another’s business; (b) in the case of a partnership, they are a partner and that partnership, and the partner, either alone or together with persons who are related to the partner, owns 25 per cent or more of the rights to the income or capital of the partnership; (c) they are shareholders and a body in which the shareholders, either alone or together with persons who are related to the shareholders– (i) control 25 per cent or more of the voting power in the company; or (ii) own 25 per cent or more of the rights to distribution of income or to the capital by the company; (d) in the case of two companies , a person directly or indirectly, either alone or together with persons who are related to the person referred to in paragraph (c), owns, controls or holds 25 per cent or more of the voting power or the rights to the distribution of income or capital in both of the companies; (e) one of them directly or indirectly controls the other; (f) both of them are directly or indirectly controlled by a third person; (g) together they directly or indirectly control a third person; (h) they are members of the same family; or (i) in the case of a trust they are the trustees and a person who is or may be a beneficiary of the trust or, in the case of an individual, whose relative is or may be a beneficiary of the trust. (2) Persons who are associated in business with one another in that one is the sole agent, sole distributor, or sole concessionaire, however described, of the other are related persons only if they fall within subsection (1). (3) For the purposes of this section- (a) one person controls another if the former is legally or operationally in a position to exercise restraint or direction over the latter; (b) “members of the same family” in relation to a natural person means- (i ) the spouse and child of the person; (ii) an ancestor, lineal descendant of the person’s grandparents, step father, stepmother or stepchild; and an adopted child is treated as a natural child of the adopter.