Section HM 25 — Income Tax Act 2007: When entity no longer meets investment or investor requirements

HM 25 When entity no longer meets investment or investor requirements Effect (1) An entity loses PIE status if,— (a) on the last day of a quarter (the first quarter ),— (i) the entity no longer meets a requirement of sections HM 11 to HM 13 ; or (ii) an investor class of the entity no longer meets a requirement of sections HM 13 to HM 15 ; and (b) the failure to meet the requirements— (i) is significant and is within the control of the entity: (ii) is not remedied by the last day of the next quarter (the second quarter ). Date of loss of status (2) The date of loss of PIE status is— (a) when subsection (1)(b)(i) applies, the first day of the second quarter: (b) when subsection (1)(b)(i) does not apply, the first day of the third quarter. Transitional quarters disregarded (3) Subsection (1) does not apply if— (a) the start of the first quarter would be within 6 months plus 1 day of the date on which the entity becomes a PIE, or the investor class is formed; or (b) the first quarter ends within 3 months before an announcement by the entity to its investors that it, or the relevant investor class, is winding up within 12 months of the announcement. Defined in this Act: investor class , PIE , quarter Compare: 2007 No 97 s HL 4(2) Section HM 25: 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 25(2)(a): amended (with effect on 1 April 2010), on 29 August 2011 (applying for the 2010–11 and later income years), by section 65(1)(a) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 25(2)(b): amended (with effect on 1 April 2010), on 29 August 2011 (applying for the 2010–11 and later income years), by section 65(1)(b) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 25(3)(b): amended (with effect on 1 April 2010), on 7 September 2010 (applying for the 2010–11 and later income years), by section 67(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).