Effective cessation dates
The following table notes the effective cessation dates (provided the cessation is not within the first 12 months after a portfolio investment entity (PIE) commences).
| Reason | Cessation date |
|---|---|
|
Breach |
The cessation date will be the beginning of the quarter following the quarter in which the breach occurred. |
|
Wind up |
The cessation date will be the later of the date the entity became a PIE, the date nominated in the notice, or the date of our receipt of the notice. |
|
Opt-out |
The cessation date will be the later of the date the entity became a PIE, the date nominated in the notice or the date of our receipt of the notice. |
|
PIP changes to |
The cessation date will be the last day as a custodian. Note: Where a PIP changes to a full PIE it is more correctly a registration rather than a cessation, as in this instance the entity will be required to register as a PIE. For our purposes this will be a change to the entity's PIE status. |
Example
An entity that commenced on 1 October 2007 but was no longer eligible to be a portfolio investment entity due to a breach of an eligibility requirement on 27 May 2009 would cease to be a PIE on 1 July 2009 (ie, the first day after the end of the quarter).
At the time of sending the cessation notification the PIE needs to separately advise us if they require other tax types to be ceased or, if an agent is linked for the PIE tax type, whether they want to stay linked or be delinked.
Date published: 29 Jul 2008
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