Section HM 48 — Income Tax Act 2007: Adjustments to investor interests or to distributions

HM 48 Adjustments to investor interests or to distributions Adjustment (1) When a multi-rate PIE pays a tax liability or receives a tax credit under section LS 1 (Tax credits for multi-rate PIEs) in relation to an investor, it must make an adjustment to the investor interest of the investor to reflect the rate applying under section HM 60 or HM 61 . The PIE may choose to adjust— (a) the investor interest of the investor in an investor class; or (b) the amount of a distribution paid to the investor; or (c) the amount of a payment required from the investor to satisfy the PIE's tax liability. Investor's choice (2) The PIE may offer the choice made under subsection (1) to the investor. Date of adjustment (3) An adjustment under subsection (1)(a) must be made— (a) for the quarterly calculation option, within 2 months of the end of the quarter; or (b) for the exit calculation option, within 2 months of the end of the tax year; or (c) for the provisional tax calculation option, within 3 months of the end of the income year. Extending time limits (4) On application by a multi-rate PIE, the Commissioner may extend a time limit imposed under subsection (3) if it is reasonable in the circumstances. Defined in this Act: amount , income year , investor , investor interest , multi-rate PIE , pay , PIE , provisional tax , quarter , tax year Compare: 2007 No 97 s HL 7 Section HM 48: 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 48 heading: amended (with effect on 1 April 2010), on 21 December 2010 (applying for the 2010–11 and later income years), by section 99(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HM 48(1): amended (with effect on 1 April 2010), on 21 December 2010 (applying for the 2010–11 and later income years), by section 99(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HM 48(1)(a): amended (with effect on 1 April 2010), on 21 December 2010 (applying for the 2010–11 and later income years), by section 99(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HM 48 list of defined terms prescribed investor rate : repealed (with effect on 1 April 2010), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).