Section HM 53 — Income Tax Act 2007: Use of tax credits other than foreign tax credits by PIEs

HM 53 Use of tax credits other than foreign tax credits by PIEs When this section applies (1) This section applies when a multi-rate PIE has— (a) a tax credit under Part L (Tax credits and other credits) other than a tax credit under subpart LJ (Tax credits for foreign income tax); and (b) the credit is attributable in a tax year to an investor in an investor class other than— (i) a zero-rated investor: (ii) an exiting investor who is treated under section HM 61 as zero-rated: (iii) a notified foreign investor in a foreign investment PIE, in relation to a credit that is an imputation credit: (iv) a transitional resident who chooses under section HM 55D(8) to use a prescribed investor rate set out in schedule 6 , table 1, row 10 (Prescribed rates: PIE investments and retirement scheme contributions). Using tax credit to satisfy income tax liability (2) The PIE may use the tax credit under section LS 1 (Tax credits for multi-rate PIEs) to satisfy its income tax liability for the tax year in relation to the investor as a member of the class or of another investor class. A tax credit under this section is used only after the use of any credit under section HM 51 . Amount (3) The amount of the tax credit is the amount attributed. Defined in this Act: amount , foreign investment PIE , income tax liability , investor , investor class , imputation credit , multi-rate PIE , notified foreign investor , prescribed investor rate tax credit , tax year , transitional resident zero-rated investor Compare: 2007 No 97 s HL 29(13) Section HM 53: 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 53(1)(b)(ii): 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 78(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 53(1)(b)(iii): 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 78(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 53(1)(b)(iii): amended, on 2 November 2012 (applying for the 2013–14 and later income years), by section 106(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section HM 53(1)(b)(iv): inserted, on 2 November 2012 (applying for the 2013–14 and later income years), by section 106(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section HM 53(2): amended (with effect on 1 April 2010), on 7 September 2010 (applying for the 2010–11 and later income years), by section 70(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HM 53 list of defined terms foreign investment PIE : inserted, on 29 August 2011, by section 78(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 53 list of defined terms imputation credit : inserted, on 29 August 2011, by section 78(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 53 list of defined terms notified foreign investor : inserted, on 29 August 2011, by section 78(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 53 list of defined terms prescribed investor rate : inserted, on 2 November 2012, by section 106(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section HM 53 list of defined terms transitional resident : inserted, on 2 November 2012, by section 106(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).