Section HM 2 — Income Tax Act 2007: What is a portfolio investment entity?

HM 2 What is a portfolio investment entity? Meaning (1) A portfolio investment entity (a PIE ) is a company or fund that— (a) makes investments on behalf of 1 or more investors in the entity or in an investor class of the entity; and (b) meets and maintains the requirements for PIE status; and (c) chooses to become a PIE by notifying the Commissioner. PIE types (2) An entity that chooses to become a PIE must be 1 of the following types of entity: (a) a multi-rate PIE: (b) a listed PIE: (c) a benefit fund PIE: (d) a life fund PIE: (e) a foreign investment PIE that is either a foreign investment zero-rate PIE or a foreign investment variable-rate PIE. Listed PIEs becoming multi-rate PIEs (3) Despite subsection (2), an entity that chooses to become a listed PIE may choose to become a multi-rate PIE if it meets the requirements of the entry rules set out in sections HM 7 to HM 30 . Foreign investment PIEs (4) The provisions of the PIE rules as they relate to multi-rate PIEs apply in the same manner to foreign investment PIEs, unless a provision expressly states otherwise. Defined in this Act: benefit fund PIE , Commissioner , company , foreign investment PIE , foreign investment variable-rate PIE , foreign investment zero-rate PIE , investor , investor class , life fund PIE , listed PIE , multi-rate PIE , notify , PIE , portfolio investment entity Compare: 2007 No 97 s YA 1 “ portfolio investment entity ” Section HM 2: inserted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section HM 2(2)(d): amended, 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 52(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 2(2)(e): added, 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 52(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 2(4) heading: added, 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 52(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 2(4): added, 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 52(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 2 list of defined terms foreign investment PIE : inserted, on 29 August 2011, by section 52(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 2 list of defined terms foreign investment variable-rate PIE : inserted, on 29 August 2011, by section 52(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 2 list of defined terms foreign investment zero-rate PIE : inserted, on 29 August 2011, by section 52(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).