Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
HM 22: Exceptions for certain funds
or “Certain funds and investors are exempt from specific portfolio investment entity rules”
You could also call this:

“Special rules for foreign PIE equivalents investing in PIEs and PIEs investing in foreign PIE equivalents”

If you invest in a PIE (Portfolio Investment Entity) and you’re a foreign PIE equivalent, some special rules apply to you. You don’t need to worry about the usual investor class requirements in section HM 14(1). Also, the normal limits on investor interests mentioned in section HM 15 don’t affect you.

If a PIE invests in a foreign PIE equivalent, it doesn’t have to follow the usual rules about how much it can invest. The limits mentioned in section HM 13 don’t apply to these investments.

These exceptions make it easier for foreign PIE equivalents to invest in PIEs, and for PIEs to invest in foreign PIE equivalents, without having to follow all the usual rules.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: HM 24: Immediate loss of PIE status

or “When a PIE immediately loses its status for not following certain rules”
Next

Part H Taxation of certain entities
Portfolio investment entities: Exceptions

HM 23Exceptions for foreign PIE equivalents

  1. If an investor in a PIE is a foreign PIE equivalent,—

  2. the requirement for investor classes under section HM 14(1) is treated as met:
    1. no limitation on investor interests under section HM 15 applies in the case of that investor.

      1. If a PIE holds an investment in a foreign PIE equivalent, no maximum limit on shareholding in investments under section HM 13 applies to that investment.

      Compare
      • ss HL 9(4), HL 10(4)
      Notes
      • Section HM 23: 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 23(1)(b): amended (with effect on 1 April 2010), on , by section 92 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).