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New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Other entities

HR 2: Group investment funds

You could also call this:

“Special rules for reporting income from group investment funds”

If you’re responsible for a group investment fund, you need to know about some special rules. You have to give separate reports for two types of income: category A and category B. You do this every tax year using section 33 of the Tax Administration Act 1994.

When you get money from investments in a special type of fund called a designated group investment fund, or when you get category B income, it’s treated as if you earned it yourself. The normal trust rules apply to this money.

But if you get category A income from the investments and funds in your group investment fund, it’s treated differently. The law sees this as if it were income earned by an imaginary company, not by you personally.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517642.

Topics:
Money and consumer rights > Taxes
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HR 1: Partnerships and joint ventures, or

“This section about partnerships and joint ventures has been removed from the law”

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HR 3: Definitions for section HR 2: group investment funds, or

“Explaining how income is calculated for group investment funds for tax purposes”

Part H Taxation of certain entities
Other entities

HR 2Group investment funds

  1. The trustee of a group investment fund must provide for a tax year under section 33 of the Tax Administration Act 1994, separate returns of its category A income and its category B income.

  2. If the trustee of a group investment fund derives an amount that is income derived from investments and funds of a designated group investment fund or category B income, the amount is treated as income derived by the trustee and the trust rules apply.

  3. If the trustee of a group investment fund derives from the investments and funds of the group investment fund an amount that is category A income, the amount is treated as income of a notional company.

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