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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Requirements

HM 19: Requirements for listed PIEs: fully crediting distributions

You could also call this:

“Listed PIEs must give maximum tax credits when paying investors”

This rule applies to listed PIEs, which are a type of investment company, but not to life fund PIEs.

When a listed PIE gives money to an investor, they must give as many imputation credits as they can. Imputation credits are like bonus points that reduce the tax you need to pay. The company’s directors decide how many of these credits are available to give out.

If you choose to include the money you get from the PIE as income when you do your tax return, there are special rules about how the imputation credits are treated. You can find these rules in section CX 56C(2).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888743.

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

HM 19Requirements for listed PIEs: fully crediting distributions

  1. This section is an additional rule for an entity that is a listed PIE other than a life fund PIE.

  2. When a listed PIE distributes an amount to an investor in an investor class, the distribution must be fully credited as described in section CD 43(26) (Available subscribed capital (ASC) amount) to the extent permitted by the imputation credits that the directors of the company determine are available.

  3. For the treatment of imputation credits when a shareholder chooses to include the distribution as income in their return of income, see section CX 56C(2) (Distributions to investors by listed PIEs).

Compare
  • s HL 8
Notes
  • Section HM 19: 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 19(2): amended, on , by section 141(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section HM 19 list of defined terms FDP credit: repealed, on , by section 141(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).