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HM 60: Notified investor rates
or “How to tell a PIE your tax rate for investments”
You could also call this:

“Inland Revenue can set your PIE tax rate if needed”

If you invest in a multi-rate PIE (Portfolio Investment Entity), the Commissioner of Inland Revenue can provide a tax rate for the PIE to use when calculating your income. This can happen if the Commissioner thinks the rate you told the PIE (your notified investor rate) doesn’t match the rate that should apply to you (your prescribed investor rate). The Commissioner can also provide a rate if you haven’t told the PIE what your rate should be.

When the Commissioner gives a rate to the PIE, the PIE must use this rate as soon as they can, just as if you had told them this new rate yourself.

However, if you tell the PIE a different rate after the Commissioner has given them one, the PIE must use the rate you’ve told them instead of the Commissioner’s rate.

Remember, a PIE is a type of investment, and these rules help make sure the right amount of tax is paid on your investment income.

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Next up: HM 61: Certain exiting investors zero-rated

or “Some investors in certain PIEs may have a 0% tax rate when exiting their investment”
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Part H Taxation of certain entities
Portfolio investment entities: Prescribed and notified rates for investors in multi-rate PIEs

HM 60BInvestor rates provided by Commissioner

  1. Despite section HM 60, the Commissioner may, in relation to an investor in a multi-rate PIE, provide a tax rate for the PIE to apply to the investor’s attributed PIE income for a calculation period if—

  2. the Commissioner—
    1. considers that the investor’s notified investor rate is inconsistent with the investor’s prescribed investor rate; and
      1. holds information about the investor that is sufficient to enable the Commissioner to determine the appropriate rate for the investor:
      2. the investor does not have a notified investor rate.

        1. For the purposes of section HM 60(3), as soon as reasonably practicable after having been notified of the rate provided by the Commissioner, the PIE must apply the rate provided by the Commissioner as if it were the most recent notified investor rate.

        2. Despite subsection (2), if the Commissioner provides a tax rate for an investor to the PIE under subsection (1), and the investor subsequently notifies the PIE under section HM 60(1) of a different investor rate, the PIE must apply the rate notified by the investor.

        Notes
        • Section HM 60B: inserted, on , by section 152 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).