Key portfolio investment entity (PIE) terms
List of words and terms that relate to PIEs
|
Term |
Description |
|---|---|
| Annual income tax filer |
A PIE that is not an MRP and files income tax returns. Includes listed PIEs that are not MRPs, benefit fund PIEs and life fund PIEs. |
| Annual reconciliation | A return completed in the prescribed electronic form by an MRP or PIP for the year showing the income tax paid by the PIE for the year and any further relevant information, and also attaching certificates confirming attributed income and tax deducted for each investor. |
| Attributed income | The income a PIE shows on an investor statement as attributed to an investor from an investment or superannuation scheme for the tax year. |
| Attribution period | The period in which an entity attributes income. |
| Benefit fund PIE | A benefit fund that is a PIE and does not attribute income to investors. |
| B2B | "Business to business" or "B2B" is a term commonly used to describe electronic commerce transactions between businesses, as opposed to those between businesses and other groups. In this case it allows direct transfer of the information from the PIE to Inland Revenue. |
| Calculation period | The period which contains one or more attribution periods and in which an entity calculates income or loss of an investor. |
| Class fraction | The fraction of the proceeds from an entity investment to which the investors in the investor class in an MRP are entitled as a group. |
| Class net income | The amount of class assessable income after class deductions, if the calculated amount is more than zero. |
| Class taxable income | For an attribution period the amount of the class net income after the class net loss and other loss used have been deducted, if the amount is more than zero. |
| Collective investment vehicle | A group investment entity such as a managed fund. |
| Entity tax liability | The tax liability calculated for a calculation period for an MRP. |
| Exit MRP | A PIE that has become an MRP with a calculation period of a day. |
| Fair dividend rate | A method for calculating a person's income or loss from an interest in a foreign investment fund. |
| Foreign investment PIE | A PIE that meets the requirement to be a multi-rate PIE and certain other requirements and chooses to be either a foreign investment zero-rate PIE or a foreign investment variable-rate PIE. |
| File transfer facility | This is the internet filing option available through our website under "Secure online services". |
| Foreign PIE equivalent FPE | A widely held entity that is not resident in New Zealand, but if it was a New Zealand tax-resident, and provided it satisfied the eligibility requirements to become a PIE would be eligible to be a PIE that holds investments in underlying companies. Previously foreign investment vehicle |
| Foreign tax credit | Foreign tax credits are amounts that, if paid, would satisfy a person's obligations in a foreign country in relation to amounts that have the same nature as income tax. The foreign tax credit will not arise unless there is foreign tax paid. |
| Formation loss | The total amount of losses arising from a period before the entity becomes a PIE. |
| Investor |
An investor, in relation to a PIE or foreign PIE equivalent (FPE) is:
|
| Investor interest | An interest in a PIE that gives the holder an entitlement to a distribution of proceeds from the PIE's investments. |
| Investor percentage | The percentage share that an investor in an investor class is entitled to for income, expenditure and tax credits. |
| Investor statement | A notice given to each investor in an MRP giving relevant information. |
| Land investment company | An investment entity other than a PIE that holds property with a market value of $100,000 or more where at least 90% of the market value of all property of the company consists of interests in land or shares in a land company (other than itself) on 80% or more of the days of the year and that satisfies the income type requirement for PIEs. |
| Life fund PIE |
A unit-linked fund of a New Zealand domiciled life insurer that must be:
|
| Listed PIE | A PIE listed on a recognised exchange in New Zealand or a company that intends to become listed within two years. Has not chosen to be a multi-rate PIE. |
| MRP choosing to pay provisional tax | A PIE that has become an MRP that has a calculation period of a year and has elected to file income tax returns and pay provisional tax. |
| Multi-rate PIE (MRP) | A PIE that is not a listed PIE on the New Zealand exchange, a benefit fund PIE or a life fund PIE that has not chosen to be an MRP, and which calculates tax based on its investors' PIRs. |
| New Zealand tax credit | New Zealand tax credits are imputation credits, resident withholding tax credits, dividend withholding payment credits and Māori authority credits. |
| Notified foreign investor |
A non-resident who is:
and provides the additional investor information requirements. |
| Notified investor rate |
The rate at which an MRP calculates tax on investor's attributed income in a calculation period. The rate is:
|
| PIE periodic return | IR852 PIE tax returns required to be filed by quarterly and exit MRPs. |
| PIE investor proxy (PIP) | An entity that holds the interest in a PIE on behalf of an investor. |
| Prescribed investor rate (PIR) | The tax rate of an investor that the MRP can use to calculate it’s tax on each investors share of the income and deductions. |
| Quarterly MRP | A PIE that has become an MRP with a calculation period of a quarter and which may zero-rate exiting investors. |
| Variable-rate PIE | A multi-rate PIE than meets the eligibility requirements and chooses to operate as a foreign investment variable-rate PIE for certain non-resident investors. |
| Zero-rated investor | An investor in an MRP that qualifies for a PIR of 0%. |
|
Zero-rate PIE |
A multi-rate PIE than meets the eligibility requirements and chooses to operate as a foreign investment zero-rate PIE for certain non-resident investors. |
Date published: 30 Aug 2011
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