Section CX 56 — Income Tax Act 2007: Attributed income of certain investors in multi-rate PIEs

CX 56 Attributed income of certain investors in multi-rate PIEs When this section applies (1) This section applies when an investor in a multi-rate PIE derives income attributed under section CP 1 (Attributed income of investors in multi-rate PIEs) in an income year, and— (a) the prescribed investor rate for the investor in the relevant calculation period is more than zero; and (b) that rate is not more than the notified investor rate in relation to the investor when the PIE calculates— (i) its income tax liability under section HM 47 (Calculation of tax liability or tax credit of multi-rate PIEs) in relation to the income; or (ii) a voluntary payment under section HM 45 (Voluntary payments) that is intended to be a final payment of its income tax liability in relation to the income. When this section also applies (1B) This section also applies when a foreign investment PIE attributes income to an investor who is, for the calculation period in which the amount is attributed,— (a) a notified foreign investor other than a person referred to in section HM 55D(6) : (b) a transitional resident who has chosen a prescribed investor rate referred to in schedule 6 , table 1, row 10 (Prescribed rates: PIE investments and retirement scheme contributions): (c) a transitional resident when the calculation period falls in the tax year in which the person becomes or ceases to be a transitional resident: (d) an investor in the PIE when the calculation period falls in the tax year in which the person either becomes or ceases to be resident in New Zealand. When this section does not apply (2) This section does not apply when— (a) the PIE calculates its income tax liability using the quarterly calculation option under section HM 43 (Quarterly calculation option) and the amount is attributed to an investor who is treated under section HM 61 (Certain exiting investors zero-rated) as zero-rated: (b) an amount of attributed PIE income is derived by a trustee who has chosen a prescribed investor rate referred to in schedule 6 , table 1, row 5 or 7, as applicable: (c) a person to whom section HM 57B (Prescribed investor rates for new residents) applies chooses not to apply the section to determine their prescribed investor rate for a resident year. Excluded income (3) The amount is excluded income of the investor. Defined in this Act: amount , attribution period , calculation period , excluded income , foreign investment PIE , income , income tax liability , income year , investor , multi-rate PIE , notified foreign investor , notified investor rate , pay , PIE , prescribed investor rate , quarter , resident in New Zealand , tax year , transitional resident Section CX 56: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 65(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section CX 56(1)(b): amended, on 1 October 2010, by section 5(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section CX 56(1B) heading: inserted, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 9(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section CX 56(1B): inserted, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 9(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section CX 56(2)(b): amended, on 1 April 2012 (applying for the 2012–13 and later income years), by section 9(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section CX 56(2)(b): amended, on 29 August 2011, by section 9(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section CX 56(2)(b): amended, on 1 April 2010 (applying for income years beginning on or after 1 April 2010), by section 8(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section CX 56(2)(c): inserted, on 1 April 2012 (applying for the 2012–13 and later income years), by section 9(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section CX 56 list of defined terms foreign investment PIE : inserted, on 29 August 2011, by section 9(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section CX 56 list of defined terms notified foreign investor : inserted, on 29 August 2011, by section 9(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section CX 56 list of defined terms notified investor rate : inserted, on 1 October 2010, by section 5(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section CX 56 list of defined terms resident in New Zealand : inserted, on 29 August 2011, by section 9(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section CX 56 list of defined terms tax year : inserted, on 29 August 2011, by section 9(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section CX 56 list of defined terms transitional resident : inserted, on 29 August 2011, by section 9(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).