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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Requirements

HM 9: Collective schemes

You could also call this:

“Rules for what types of organisations can be collective schemes”

For a collective scheme, the entity must be one of these:

You can have a company as your entity.

Your entity can be a superannuation scheme. This is a way to save money for when you stop working.

Another option is to have a separate fund that’s part of a life insurance company. This fund holds investments for life insurance policies. The benefits people get from these policies are directly linked to how much the investments in the fund are worth.

You can also have trustees of a group investment fund as your entity. This applies to the income they earn, but only for the part that isn’t treated as income earned by a company.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888723.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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Part H Taxation of certain entities
Portfolio investment entities: Requirements

HM 9Collective schemes

  1. The entity must be—

  2. a company:
    1. a superannuation scheme:
        1. a separate identifiable fund forming part of a life insurer that holds investments subject to life insurance policies under which benefits are directly linked to the value of the investments held in the fund:
          1. the trustees of a group investment fund in relation to income derived by them to the extent to which the income is not treated as income derived by a company under paragraph (a).

            Notes
            • Section HM 9: 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            • Section HM 9(c): repealed, on , by section 125 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
            • Section HM 9(d): amended (with effect on 1 April 2010), on (applying for the 2010–11 and later income years), by section 88(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
            • Section HM 9(e): added (with effect on 1 April 2010), on (applying for the 2010–11 and later income years), by section 88(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).