End of year returns
- Types of returns
- End of year PIE periodic return (IR852)
- Annual reconciliation return (IR853)
- Investor certificates (IR854)
- Investor statements
- Other PIE responsibilities at the end of the year
- Consequences of not filing a tax return or annual reconciliation
- Changes for foreign investment PIEs
Where there is a change to the PIRs in schedule 6 during a transitional year such as the 2011 income year, go to the transitional process section.
Types of returns
The following chart shows the type of returns that must be filed by portfolio investor entities (PIE) at the end of the year.
| PIE type | PIE return | Income tax return | Annual reconciliation | Investor certificate | Investor statement |
|---|---|---|---|---|---|
| Quarterly MRP |
X (for quarter ended 31 March) |
|
X (for tax year) |
X | X |
| Exit MRP |
X (for tax year and exitors during March) |
X (for tax year) |
X | X | |
| Provisional taxpayers | X | X | X | X | |
| Annual income tax return filers | X |
|
may issue statement at their discretion |
End of year PIE periodic return (IR852)
| If you are a ... | then you will file ... | Note |
|---|---|---|
| quarterly MRP | a PIE periodic return for the quarter starting 1 January and ending 31 March. | |
| Exit MRP | a PIE periodic return for the tax year 1 April to 31 March for all investors who did not exit during the year. | Include details for investors who exited during the month of March. |
The PIE periodic return is due no later than 30 April.
No extensions of time to file PIE periodic returns will be allowed.
Changes for foreign investment PIEs
The PIE periodic return IR852 will have two new fields added to cater for income attributed to NFI and tax paid on NFI income. These amounts should not be less than zero due to the lack of expenses that can be claimed. To cater for adjustments the field will accept both positive and negative values; the default is positive. The field named "Taxable income and Taxable loss" will become "Total income and Total loss" to cater for notified foreign investors and non-deductible expenditure.
Annual reconciliation return (IR853)
All MRPs must file an annual reconciliation return (IR853) electronically.
Listed PIEs that are not MRPs, benefit fund PIEs and life fund PIEs do not have to file annual reconciliation returns as they do not pay tax based on their investors' PIRs and do not attribute income to investors.
End of year PIE annual reconciliation due dates
|
If you are a MRP or PIP that ...
|
then annual reconciliation and investor certificates are due by ... |
|---|---|
| has a 31 March or earlier balance date | 31 May or 30 June for lock-in PIE funds following the tax year. |
| has a balance date later than 31 March | the end of the second month after the balance date. |
| ceases to be a PIE | the end of the third month following the month of cessation. |
No extensions of time to file an annual reconciliation will be allowed.
Changes for foreign investment PIEs
There are no material changes to the Annual reconciliation return (IR853). A version 0004 has been created so that a full series of version 0004 can be used. The only change is that the field name for "Taxable income/loss" becomes "Total income/loss" to cater for notified foreign investors. Because the tags are changing, B2B filers will need to use version 0004.
Investor certificates (IR854)
The PIE sends investor certificates to us at the time of filing the annual reconciliation return. They are different from the investor statements that the PIE issues to the investor.
Investor certificates must be sent in the prescribed electronic form within the same timeframe allowed for the reconciliation. The reconciliation return (IR853) and certificates can be included in the same file that PIEs submit PIE returns, through the file transfer service.
There is no payment required with the annual reconciliation return; it is a data drop only. Any PIE tax payable is due by the required due dates for the PIE periodic returns.
If the investor certificates are not sent with the annual reconciliation return or are invalid we will contact the PIE to arrange for the investor certificates to be filed, or resubmitted.
PIEs cannot just send a copy of the investor statement sent to investors as it is likely to be paper-based whereas the investor certificate must be filed in an electronic format.
The investor's IRD number should be shown on the investor certificate. However, it is critical that the PIE's IRD number must be recorded correctly. If the PIE's IRD number is not recorded or invalid all the certificates will be rejected and the PIE will be required to resubmit all investor certificates.
Investor statements
MRPs are required to issue investor statements to investors.
An investor statement must be issued for each tax year by:
- 31 May or 30 June for lock-in PIE funds after the end of the MRP's tax year, or
- the end of the month following the quarter in which an investor exits a quarterly MRP
- the end of the second month following the month in which the MRP's income year ends if the MRP has a balance date later than 31 March.
This information will also be needed by:
- exiting or zero-rated investors so that they can comply with their tax obligations for any income or loss attributed to them by a Multi-rate PIE, and
- investors so that they can determine their PIR in subsequent years.
Other PIE responsibilities at the end of the year
MRPs should ask investors to give them their PIR and IRD number.
The MRP must also make any changes to its attribution and/or calculation periods before the start of the tax year.
Consequences of not filing a tax return or annual reconciliation
Although PIEs that file income tax returns will continue to be entitled to request extensions of time to file their income tax returns, there will be no extension of time granted for filing IR 852 PIE periodic returns, or IR853 annual reconciliation returns.
Late filing of quarterly returns for quarterly MRPs or the March return for exit MRPs, or the annual reconciliation will prompt late filing penalties. Failure to file those PIE returns may also prompt prosecution action.
All PIE periodic returns must be filed electronically. Failure to do so will incur a non-electronic filing penalty of $250.
Late payment penalties may also apply, as with any other tax type.
Penalties can also be applied for failure to provide investor certificates.
Changes for foreign investment PIEs
There will not be additional reporting requirements on those PIEs that do not choose to become foreign investment PIEs. So new versions of the existing returns and certificates have been developed.
Changes have been made to the PIE periodic return, investor certificate and investor statement requirements to be filed by the new foreign investment PIEs. Where a fund has multiple PIEs and one or more will become a foreign investment PIE, they may find it easier to use the one version for the reporting requirements for all their PIEs. So they will use the foreign investment PIE versions for all their PIEs.
The changes to the reporting have been kept with only the total income attributed to notified foreign investors (NFI) and the tax paid on that income being reported.
See "End of year PIE periodic return (IR852)" and "Annual reconciliation return (IR853)" above.
Foreign investment PIEs transitional year
Foreign investment zero-rate PIEs can continue to use the existing version 0003 for both the IR852 and IR853 but must use the new version 0004 for the IR854.
Variable-rate PIEs for the 2013 tax year will need to use version 0004 for the IR852 and IR854 but may choose to use either version 0003 or version 0004 for the IR853.
Foreign investment PIEs using B2B must use version 0004 for all returns.
Find out more
Find out more about the return detail requirements
Date published: 23 Nov 2011
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