Returns and reporting requirements

IR852 PIE periodic returns

You have to file PIE periodic returns if you have chosen to become a quarterly or an exit multi-rate PIE (MRP).

Quarterly MRPs

You must file PIE tax returns along with payment of any PIE tax liability by the end of the month following the end of the quarter as follows:

Return periods	Payment and return filing due date
IR 852 PIE return for 30 June	31 July
IR 852 PIE return 30 September	31 October
IR 852 PIE return 31 December	31 January
IR 852 PIE return 31 March	30 April

You must also file an annual reconciliation after the end of the tax year.

Exit MRPs

You could file up to 12 PIE periodic returns in the tax year.

The PIE return for the March period will include any investors that exit the PIE in March, and the remainder of investors who have not exited the PIE in the tax year.

PIE returns are also required for each month in the tax year during which an investor exited the PIE. If no investors exited the MRP during the tax year you would only file a PIE periodic return for the March period covering tax calculated for the tax year.

See the table below for details:

Return period	Payment and return filing due date
IR 852 PIE returns for investors for each month, for investors who have exited the MRP during the month.	By the end of the month following the end of the period. Payments due for the November period will be due by 15 January.
IR 852 PIE return for the year ended 31 March for investors who remain in the PIE. Include investors that have exited in the month ended 31 March.	By 30 April

You must also file an annual reconciliation after the end of the tax year.

Optional or voluntary payments made by both quarterly and exit MRPs where an investor reduces their investor interest are also made by the required return/payment due dates.

Any tax credit for a return period would be due at the same time and interest would be payable.

If you choose to be a quarterly or exit MRP you do not file income tax returns.

Paying PIE tax

Payments by MRPs must be made by the end of the month after the end of the period, whether the end of the PIE's period is the end of a:

• period in which an investor exits
• quarter, or
• tax year.

The exception to this is payments due for the November period for exit MRPs where payment is due 15 January.

The payments can be paid in the same manner as payments for any other revenue.

PIES that have chosen to calculate tax annually and pay provisional tax

You file tax returns and pay provisional tax as usual under the income tax revenue type. You do not file PIE periodic returns. However the tax calculated is based on the PIR of its investors. As provisional tax payers these MRPs cannot pass losses down to the investors. Losses are subject to the usual income tax treatment and carry forward provisions. Furthermore, tax credits are used by the MRP and do not pass out to investors.

You are also required to file an annual reconciliation by 30 June or two months after the end of the MRPs income year, whichever is later.

PIES that have chosen to be annual income tax return filers

PIEs that continue to file income tax returns are:

• benefit funds
• listed companies that have not chosen to be MRPs, and
• life funds.

You file tax returns and pay provisional tax as usual under the income tax revenue type. These PIEs are not MRP which calculate tax based on their investors' PIR and consequently do not file PIE periodic returns, annual reconciliations or investor certificates.

Unless an extension of time to file an income tax return has been granted, income tax returns are required to be filed by:

• 7th of the fourth month after balance date for taxpayers with late balance dates (ie, 1 April to 30 September), or
• 7 July following the end of the tax year for other taxpayers.

Filing PIE returns and paying provisional tax if PIE tax is more than $2,500

You may still have to pay provisional tax if, after becoming a PIE you are still required to file income tax returns and your residual income tax exceeds $2,500.

Electronic filing

Quarterly and exit MRPs must file electronically using the B2B or file transfer processes. Provisional tax payers and annual income tax filers file their income tax returns either electronically or manually as usual.

The two electronic means for MRPs to file PIE periodic returns, annual reconciliations and investor certificates are:

• B2B which allows direct transfer of the information from the PIE to us.
• File transfer which enables a PIE filer, registered to use the file transfer facility, to upload PIE returns to us through our website.

There is no facility for paper registration, cessation or return filing and you cannot send in a paper return if the online service isn't working. All transactions for quarterly and exit MRPs are electronic.

PIE investor proxies (PIPs) and income tax returns

PIPs will file both income tax and PIE periodic returns. The income tax returns filed will account for the non-PIE income of the PIP. It will file PIE returns in respect of the PIE income for the investors it represents.

PIPs may perform the PIE's obligations where the PIE is a MRP and may take on the MRP's obligations on its investors' share of the income from various portfolio investment entities. We record custodians as PIEs in order to accommodate their PIE obligations.

PIPs can generally adopt either the quarterly or exit options for filing returns. A PIP cannot apply the annual income tax option in respect of its PIE income.

Annual reconciliation information and reporting requirements

As well as the required income tax or PIE periodic returns, all entities that have elected to become:

• MRPs (quarterly or exit or provisional taxpayers), or
• PIPs and that calculate tax based on their investors' PIR

must file an IR 853 annual reconciliation providing the details for all investors in the PIE in the prescribed electronic form.

Due dates for filing the annual reconciliation

The due dates for the annual reconciliation and investor certificates are:

• for MRPs or PIPs that have a 31 March or earlier balance date, by 30 June following the tax year
• for MRPs or PIPs that have balance dates later than 31 March, by the end of the second month after the balance date
• for MRPs or PIPs that cease to be PIEs, by the end of the third month following the month of cessation.

Electronic investor certificates (IR 854) for each investor must be sent to Inland Revenue along with the reconciliation. Annual reconciliations must also be filed by MRPs that cease.

IR 854 Investor certificate

IR 854 electronic investor certificates, for each investor in the MRP must be sent with the IR 853 annual reconciliation and filed in the prescribed electronic form by all entities that have elected to become PIEs, or PIE investor proxies, and that calculate tax based on their investors' PIR.

The investor certificates include a unique identifier to show that the certificate is not a duplicate or amendment. This may be a sequential number or other unique identifier, particularly relevant if more than one certificate is being filed for any single investor.

It is critical that the investor certificates record the correct PIE IRD number. Without this the investor certificates cannot be attached to the annual reconciliation. If the PIE's IRD number is omitted or not correct on the investor certificates they will not be attached to the reconciliation and the PIE will be requested to re-submit the certificates.

Investor statements

Information and reporting requirements for PIEs to their investors

MRPs must provide investors with an investor statement containing information regarding their interest in the PIE, their income derived from their investment in the tax year and the tax calculated by the PIE on their investment. The details on the investor statement will depend on the investor's PIR and if there is a PIR change.

This information will also be needed by exiting or zero-rated investors to comply with their tax obligations for any income or loss attributed to them by a MRP. It will also be required by investors in determining their PIR in subsequent years.

The investor statement does not have to be a separate document and can be added to existing documentation issued by the MRP. These requirements can also be met by using more than one document.

Only MRPs are required to issue investor statements.

When the investor statement is issued

When an investor with a PIR of 12.5%, 21% or 30% exits a quarterly MRP that has applied the zero rate on exit, an investor statement must be issued to the investor by the end of the month following the quarter in which the investor exits the MRP.

In other cases, an investor statement is required to be issued for each tax year by:

• 30 June after the end of the MRP's tax year, or
• the end of the second month following the month in which the MRP's income year ends, if the corresponding income year ends after the tax year.

Find out more about the return detail requirements

 

Date published: 26 Feb 2010

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