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Income Tax Act 2007

Taxation of certain entities - Terminating provisions

HZ 5: Transitional provisions for PIE rules

You could also call this:

“Rules for understanding changes to portfolio investment entity (PIE) tax regulations”

The PIE rules are about portfolio investment entities. They are part of the Income Tax Act 2007. These rules are written in a new way, but they mean the same thing as the old rules.

If you’re not sure what a new PIE rule means, or if it doesn’t make sense, you can look at the old rules to understand it better. You can assume that for every new rule, there’s an old rule that matches it.

However, there are two cases where you can’t use the old rules to understand the new ones:

  1. When a new PIE rule completely replaces an old rule.
  2. When a PIE rule has been changed after a certain date. This date is when section 292(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 started. In this case, the new rule applies from the date it was changed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2900100.

Topics:
Money and consumer rights > Taxes
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HZ 6: Saving of binding rules relating to portfolio investment entities, or

“Old rules for portfolio investments still apply to existing arrangements”

Part H Taxation of certain entities
Terminating provisions

HZ 5Transitional provisions for PIE rules

  1. The PIE rules are the provisions of the Income Tax Act 2007 relating to portfolio investment entities in rewritten form, and are intended to have the same effect as the relevant corresponding provisions of the Income Tax Act 2007. Subsection (3) overrides this subsection.

  2. Unless subsection (3) applies, in circumstances where the meaning of a PIE rule (the new law) is unclear or gives rise to absurdity—

  3. the wording of the provisions of the Income Tax Act 2007 relating to portfolio investment entities that correspond to and are replaced by the PIE rules (the old law) must be used to determine the correct meaning of the new law; and
    1. it can be assumed that a corresponding old law provision exists for each new law provision.

      1. Subsections (1) and (2) do not apply in the case of—

      2. a PIE rule that repeals an old law and replaces it with a new law:
        1. a PIE rule that is amended after the commencement of section 292(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009, with effect from the date on which the amendment comes into force.

          Notes
          • Section HZ 5: inserted, on (applying for the 2010–11 and later income years), by section 295(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section HZ 5(3)(b): amended (with effect on 1 April 2010), on (applying for the 2010–11 and later income years), by section 80(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).