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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Introductory provisions

HM 4: Who is an investor?

You could also call this:

“This explains who counts as an investor in a Portfolio Investment Entity (PIE) or similar fund”

You are an investor in a PIE or foreign PIE equivalent if you are a shareholder in a company, or if you have benefits from a life insurance policy that are directly linked to investments held in a life fund PIE. You’re also an investor if you’re entitled to a share of funds that an entity can give out, based on the entity’s rules or trust terms, as if the entity were a company and you were a shareholder.

If you’re an investor in a multi-rate PIE, you need to give them your tax file number when they ask for it. If you don’t give it to them within the time they’ve set, you’ll be treated as an investor whose interest has reached the exit level. This means you might have to leave the PIE.

The law that talks about when you need to provide your tax file number is section 28B of the Tax Administration Act 1994. You can look at this section to find out more about when you need to give your tax file number.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888709.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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HM 3: Foreign PIE equivalents, or

“Rules for overseas investment entities similar to PIEs”

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HM 5: What is an investor class?, or

“An investor class is a group of investors with equal rights and similar investment shares in an entity”

Part H Taxation of certain entities
Portfolio investment entities: Introductory provisions

HM 4Who is an investor?

  1. An investor in a PIE or foreign PIE equivalent means—

  2. for an entity that is a company, a shareholder in a company:
    1. for a life fund PIE, a person whose benefits under the relevant life insurance policy are directly linked to the value of investments held in the PIE:
      1. for an entity that is not a company or a life fund PIE, a person who is entitled to a proportion of the funds available for distribution by the entity—
        1. under the rules of the entity or terms of the trust under which the entity is established; and
          1. as if the entity were a company and the person were a shareholder in the company.

          2. An investor in a multi-rate PIE who is required under section 28B of the Tax Administration Act 1994 to provide a tax file number to the PIE and fails to do so within the time limit set out in that section is treated as an investor whose interest has reached the exit level.

          Compare
          • s HL 5B(1)
          Notes
          • Section HM 4: inserted, on (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section HM 4(1) heading: inserted, on , by section 124(1) (and see section 124(4) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section HM 4(2) heading: inserted, on , by section 124(2) (and see section 124(4) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section HM 4(2): inserted, on , by section 124(2) (and see section 124(4) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section HM 4 list of defined terms exit level: inserted, on , by section 124(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section HM 4 list of defined terms multi-rate PIE: inserted, on , by section 124(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section HM 4 list of defined terms tax file number: inserted, on , by section 124(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).