Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Elections and consequences

HM 72: When elections take effect

You could also call this:

“Timing and rules for starting or stopping as a PIE”

When you choose to become a PIE or a foreign investment PIE, your choice starts working on the latest of these dates: when your entity is formed, the date you put in your notice, or 30 days before the Commissioner gets your notice.

If you decide to become a PIE, your choice won’t work if, within 12 months after it would start, you cancel it or something happens that would make you lose PIE status because you didn’t meet the rules in each quarter of those 12 months.

If you decide to stop being a PIE, this takes effect on the latest of these dates: when you became a PIE, the date you put in your notice, or when the Commissioner gets your notice.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888876.

Topics:
Money and consumer rights > Taxes
Previous

HM 71B: Choosing to become foreign investment PIE, or

“How a multi-rate PIE can choose to become a foreign investment PIE for overseas investors”

Next

HM 73: Transition: provisional tax, or

“Rules for tax changes when becoming a Portfolio Investment Entity (PIE)”

Part H Taxation of certain entities
Portfolio investment entities: Elections and consequences

HM 72When elections take effect

  1. An election under section HM 71 or HM 71B to become a PIE or a foreign investment PIE, as applicable, takes effect on the latest of the following dates:

  2. the date the entity is formed:
    1. the date set out in the notice:
      1. 30 days before the Commissioner receives the notice.

        1. Despite subsection (1), an entity's election to become a PIE does not take effect if, in the period ending 12 months after the date on which the election would be effective,—

        2. the entity cancels the election:
          1. an event or situation arises that means the entity would lose PIE status under any of sections HM 24 to HM 28 because the requirements of sections HM 11 to HM 16 were not met in each quarter of the 12-month period.

            1. An election under section HM 29 to cancel PIE status takes effect on the latest of the following dates:

            2. the date the entity became a PIE:
              1. the date set out in the notice:
                1. the date on which the Commissioner receives the notice.

                  Compare
                  • ss HL 11(2), (2B), (4), HL 13(1), (4), HL 15(2)
                  Notes
                  • Section HM 72: 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 72(1): amended (with effect on 29 August 2011), on , by section 92 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
                  • Section HM 72(1): amended, on , by section 87(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                  • Section HM 72(2)(b): substituted, on (applying for income years beginning on or after 1 April 2010), by section 52(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                  • Section HM 72 list of defined terms foreign investment PIE: inserted, on , by section 87(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                  • Section HM 72 list of defined terms quarter: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).