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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Attributing income to investors

HM 39: New investors in existing investor classes

You could also call this:

“How new investors can join existing investment groups in a PIE”

When you want to invest in a multi-rate PIE (Portfolio Investment Entity), you might choose an existing investor class. Sometimes, the PIE might not have enough investments for you to qualify as an investor in that class right away.

In this case, the PIE can still treat you as an investor in the class. However, they need to get enough investments as described in section HM 11 as soon as they can after you invest. This way, you can properly become part of the investor class you chose.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888794.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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“Rules for when you're considered to own a share in a superannuation fund”

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HM 40: Deductions for attributed PIE losses for zero-rated and exiting investors equal to amount attributed, or

“Zero-rated or exiting PIE investors can deduct attributed losses”

Part H Taxation of certain entities
Portfolio investment entities: Attributing income to investors

HM 39New investors in existing investor classes

  1. This section applies when a person is a new investor in an existing investor class of a multi-rate PIE but, at the time of investing, the PIE holds insufficient investments for the person to qualify as an investor in the class.

  2. The PIE may treat the person as an investor in the class if the PIE acquires sufficient investments as described in section HM 11 as soon after the investor’s acquisition of the interests as is practicable.

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Notes
  • Section HM 39: 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).