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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Requirements

HM 11: Investment types

You could also call this:

“Types of investments an entity must hold”

When you have an entity, at least 90% of its assets by value must be in certain types of investments. These investments can be:

  1. An interest in land
  2. A financial arrangement
  3. An excepted financial arrangement
  4. A right or option related to the above three types of investments

There’s a special rule in Section HM 19C(1) that changes how this works for land investments and rights or options related to them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888727.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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HM 12: Income types, or

“Types of income a portfolio investment entity must mainly receive”

Part H Taxation of certain entities
Portfolio investment entities: Requirements

HM 11Investment types

  1. The entity’s investments, to the extent of 90% or more by value of its assets, must be—

  2. an interest in land:
    1. a financial arrangement:
      1. an excepted financial arrangement:
        1. a right or option in relation to property listed in paragraphs (a) to (c).

          1. Repealed

          2. Section HM 19C(1) overrides subsection (1)(a) and modifies subsection (1)(d).

          Compare
          • s HL 10(1)
          Notes
          • Section HM 11: 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 11(1) heading: inserted, on , by section 58(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
          • Section HM 11(2) heading: repealed (with effect on 29 August 2011), on , pursuant to section 90(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
          • Section HM 11(2): repealed (with effect on 29 August 2011), on , by section 90(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
          • Section HM 11(3) heading: added, on (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 58(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
          • Section HM 11(3): added, on (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 58(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
          • Section HM 11(3): amended (with effect on 29 August 2011), on , by section 90(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
          • Section HM 11 list of defined terms foreign investment variable-rate PIE: inserted (with effect on 29 August 2011), on , by section 86 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
          • Section HM 11 list of defined terms foreign investment zero-rate PIE: inserted (with effect on 29 August 2011), on , by section 86 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).