Skip to main content

End-of-year arrangements Our offices and phone lines will close down over the holiday season, but our website, self-service 0800 number and myIR will remain available. Find out more

We've upgraded our voice system You may notice some changes the next time you call us. Find out more

Portfolio investment entity (PIE) investor proxies (PIPs) are intermediaries through which investors can invest in a PIE. PIPs are not PIEs themselves but they take on responsibilities as if they were a multi-rate PIE (MRP).

PIPs are sometimes referred to as custodians, nominees or wrap accounts.

How to become a PIP

An entity needs to meet three criteria to become a PIP:

  • The entity must hold investor interest in an MRP for each individual investor.
  • The entity must give notice to the MRP that it is holding investor interest as a proxy.
  • The entity cannot become a PIP for an investor's investment in a listed PIE.

An investment in a listed PIE can be a part of the PIP's other investment activities.

Paying tax

PIPs file PIE periodic returns quarterly or monthly.

PIPs also file income tax returns for their non-MRP investment income.

What a PIP must do

A PIP must:

  • attribute income or loss, tax credits and pay PIE tax on investor income for the period
  • provide us with PIE returns relating to attributions, credits and payments
  • provide information to the MRP if its investors may cause the MRP to breach any of its eligibility criteria
  • adjust investor transactions to reflect the prescribed investor rate on the amount attributed.
Last updated: 14 Oct 2020
Jump back to the top of the page