Section HM 5 — Income Tax Act 2007: What is an investor class?

HM 5 What is an investor class? Meaning of investor class (1) An investor class of an entity means a group of 1 or more investors in the entity that meet the requirements of subsections (2) to (4). Entitlement to distributions (2) Each investor in the group must have an entitlement to a distribution by the entity of proceeds from the entity's investments that means the requirements of subsections (3) and (4) are met. Same investments (3) The investments must be the same for all investors in the group. Similar proportionate entitlement (4) Each investor’s interest in the investment as a proportion of the value of their entitlement must not differ from the average value for the group and the investment by 2.5% or more unless— (a) the investment is an arrangement under which the PIE is assured of receiving sufficient proceeds from the investments to repay each investor in the group an amount contributed to it; and: (b) the excess in any difference between the proportion for the investor and the average value for the group arises from differences between the notified investor rates of those investors in the group. Defined in this Act: arrangement , investor , investor class , notified investor rate , pay Compare: 2007 No 97 s HL 5B(2), (3) Section HM 5: 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 5(4)(a): amended (with effect on 1 April 2010), on 21 December 2010 (applying for the 2010–11 and later income years), by section 86(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HM 5(4)(b): amended (with effect on 1 April 2010), on 29 August 2011 (applying for the 2010–11 and later income years), by section 53(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 5 list of defined terms investor interest : repealed (with effect on 1 April 2010), on 21 December 2010, by section 86(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HM 5 list of defined terms notified investor rate : inserted (with effect on 1 April 2010), on 29 August 2011, by section 53(2)(a) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 5 list of defined terms notified tax rate : repealed (with effect on 1 April 2010), on 29 August 2011, by section 53(2)(b) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).