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Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 54: No deductions for fees relating to interests in multi-rate PIEs

You could also call this:

“You can't claim tax deductions for fees paid to multi-rate PIE investment funds”

When you invest in a special type of investment fund called a multi-rate PIE, you might have to pay some fees. These fees are related to your investment in the fund. The fund includes these fees when it works out how much tax it needs to pay for you.

You can’t claim these fees as a deduction on your own tax return. This means you can’t use these fees to reduce your taxable income.

This rule applies even if you would normally be allowed to claim similar expenses as deductions. It overrides the usual rules about what you can claim as a deduction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513738.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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DB 53: Attributed PIE losses of certain investors, or

“Deductions for specific losses from multi-rate PIEs”

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DB 54B: Expenditure incurred by foreign investment PIEs, or

“Special tax rules for certain investments in foreign investment PIEs”

Part D Deductions
Specific rules for expenditure types

DB 54No deductions for fees relating to interests in multi-rate PIEs

  1. This section applies when an investor in an investor class of a multi-rate PIE incurs expenses in relation to their investor interest, and the entity includes the amount in the calculation of its tax liability under section HM 47 (Calculation of tax liability or tax credit of multi-rate PIEs) in relation to the investor.

  2. The investor is denied a deduction for the amount.

  3. This section overrides the general permission.

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Notes
  • Section DB 54: substituted, on (applying for the 2010–11 and later income years), by section 78(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section DB 54 heading: replaced, on , by section 28 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).