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Tax Administration Act 1994

Information, record-keeping, and returns - Statements, notices, and certificates

31C: Notification requirements for multi-rate PIEs

You could also call this:

"What a multi-rate PIE must tell you about your investment and tax"

Illustration for Tax Administration Act 1994

When you invest in a multi-rate PIE, the PIE must give you notices with information the Commissioner thinks is relevant. The PIE must provide these notices at certain times, depending on how they calculate and pay tax. You can find more information about how tax is calculated in the Income Tax Act 2007, specifically in sections like HM 43 and HM 44. The PIE must ask you for your tax rate at least once a year, as required by sections HM 56 to HM 58 of the Income Tax Act 2007. They must also ask you for your tax file number when you become an investor. If you are a foreign investor, the PIE must ask you to confirm your status and details each year, as outlined in section HM 55D(3) of the Income Tax Act 2007. The PIE can give you notices electronically if you agree to it. They must give you these notices by certain deadlines, which depend on their income year and tax calculation method. You can find more information about tax calculation options in the Income Tax Act 2007, including sections HM 42 and HM 43.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2878441.

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Part 3Information, record-keeping, and returns
Statements, notices, and certificates

31CNotification requirements for multi-rate PIEs

  1. This section sets out the notice requirements for a multi-rate PIE in relation to its investors or a proxy for investors in a multi-rate PIE. The notices must contain the information that the Commissioner considers relevant for a calculation period.

  2. For an exiting investor and a PIE that calculates and pays tax using the quarterly calculation option under section HM 43 of the Income Tax Act 2007, the notice must be provided for each calculation period in which the exit period falls. The notice must be given by the end of the month following the quarter in which the exit period ends.

  3. Subsection (2C) applies when a PIE that calculates and pays tax using the quarterly calculation option makes a voluntary payment of tax under section HM 45 of that Act in relation to an exiting investor.

  4. Despite subsection (2), the PIE may provide the notice referred to in subsection (2) by 30 June after the end of the tax year, as if it were a notice described in subsection (3).

  5. For an investor not referred to in subsection (2) who invests in a PIE that calculates and pays tax using the provisional tax calculation option under section HM 44 of that Act, the PIE must notify the investor—

  6. by 31 May after the end of the tax year, if the PIE is not a superannuation fund or retirement savings scheme and has an income year ending before 31 May; or
    1. by 30 June after the end of the tax year, if the PIE is a superannuation fund or retirement savings scheme and has an income year ending before 30 June; or
      1. within 2 months after the end of the PIE's income year, if neither of paragraphs (a) and (b) applies.

        1. For an investor not referred to in subsections (2) and (3) who invests in a PIE that calculates and pays tax using the quarterly or exit calculation options under sections HM 42 and HM 43 of that Act, the PIE must notify the investor—

        2. by 31 May after the end of the tax year, if the PIE is not a superannuation fund or retirement savings scheme; or
          1. by 30 June after the end of the tax year, if the PIE is a superannuation fund or retirement savings scheme.

            1. The PIE must, at least once in a tax year, ask an investor to provide their tax rate under sections HM 56 to HM 58 of that Act. However, this subsection does not apply in relation to a foreign investment PIE and a notified foreign investor.

            2. The PIE must ask a person when they become an investor to provide their tax file number to the PIE. For each investor for whom no tax file number is held, the PIE must, at least once in a tax year, ask the investor to provide their tax file number.

            3. A foreign investment PIE must ask a person who is a notified foreign investor in the PIE at least once a year to confirm that—

            4. their status requirements under section HM 55D(3) of the Income Tax Act 2007 are met; and
              1. their information details required under section 28D(1) are unchanged.

                1. If the PIE receives no response to its request under subsection (7), they may continue to treat the investor as a notified foreign investor, if that is their existing treatment.

                2. A notice required by this section may be given electronically to—

                3. the investor, if the investor agrees to have the notice given in that way:
                  1. a person authorised to act on behalf of the investor, if the person and the investor agree to have the notice given in that way.

                    Notes
                    • Section 31C: inserted, on (applying for 2010–11 and later income years), by section 613(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                    • Section 31C(2B): inserted, on , by section 159(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                    • Section 31C(2C): inserted, on , by section 159(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                    • Section 31C(3): replaced, on , by section 144 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                    • Section 31C(4): replaced, on , by section 144 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                    • Section 31C(5): amended, on , by section 29 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                    • Section 31C(7): inserted, on , by section 159(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                    • Section 31C(8): inserted, on , by section 159(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                    • Section 31C(9): inserted, on , by section 111 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).