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Income Tax Act 2007

Taxation of certain entities - Terminating provisions

HZ 6: Saving of binding rules relating to portfolio investment entities

You could also call this:

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

This law is about keeping certain rules in place for portfolio investment entities. Here’s what you need to know:

If someone asked for a ruling about portfolio investment entities before this law started, that ruling will still work with the new rules. This applies to private rulings, product rulings, and status rulings.

The old rules about portfolio investment entities have been replaced by new rules called the PIE rules. These new rules started on 1 April 2010.

If there was a ruling about the old rules, it will now apply to the new rules in the same way. This means the ruling will still work, even though the rules have changed.

The person in charge of taxes (called the Commissioner) can’t make new rulings about how the new rules work for arrangements that already have a ruling under the old rules.

This law helps make sure that people who got rulings about portfolio investment entities before the rules changed can still rely on those rulings.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2900102.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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HZ 5: Transitional provisions for PIE rules, or

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

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HZ 7: Saving of binding rulings relating to settlements on trusts, or

“Keeping certain tax rulings about trust settlements valid despite law changes”

Part H Taxation of certain entities
Terminating provisions

HZ 6Saving of binding rules relating to portfolio investment entities

  1. This section applies when, and to the extent to which,—

  2. before the commencement of this Act,—
    1. an applicant has applied for a private ruling, a product ruling, or a status ruling, on an arrangement that is entered into, or that the applicant seriously contemplates will be entered into, before the commencement of this Act:
      1. a public ruling is issued; and
      2. the binding ruling is about a provision of the Income Tax Act 2007 relating to portfolio investment entities (the old law) that corresponds to and is replaced by the PIE rules; and
        1. the PIE rules corresponding to the old law (the new law) come into force on 1 April 2010; and
          1. the binding ruling—
            1. continues to exist at the commencement of this Act:
              1. is made after the commencement of this Act in relation to an old law before 1 April 2010:
                1. is made in relation to an old law provision of the Income Tax Act 2004 to which section ZA 4 (Saving of binding rulings) of the Income Tax Act 2007 applies, that continues to exist at the commencement of this Act; and
                2. in the absence of this section, the commencement of this Act would mean that the binding ruling would cease to apply because of section 91G of the Tax Administration Act 1994.

                  1. The binding ruling is treated as if it were made about the new law, so that the effect of the ruling at the commencement of this Act is the same as its effect before the commencement.

                  2. To the extent to which a binding ruling continued by subsection (2) exists and applies to an arrangement, or to a person and an arrangement, the Commissioner must not make a binding ruling on how—

                  3. the new law applies to the arrangement or to the person and the arrangement; or
                    1. this subsection applies to the arrangement or to the person and the arrangement.

                      Notes
                      • Section HZ 6: 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 6 list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).