Section HM 55H — Income Tax Act 2007: Treatment when certain requirements for foreign investment PIEs not met

HM 55H Treatment when certain requirements for foreign investment PIEs not met Income sources (1) A foreign investment zero-rate PIE that derives an amount of income other than a foreign-sourced amount or an amount allowable under section HM 55G is treated from the date on which the income is derived as a foreign investment variable-rate PIE. When thresholds exceeded: PIE applying zero rates (2) Subsection (3) applies for an income year and a foreign investment zero-rate PIE when— (a) on the last day of a quarter (the first quarter ), a threshold set out in section HM 55G(a) and (b) for allowable amounts of income is exceeded; and (b) the failure is not remedied by the last day of the next quarter (the second quarter ). Variable rates (3) The PIE is treated from the first day of the third quarter as a foreign investment variable-rate PIE, and must apply to each amount of income the variable investor rates under schedule 6 , table 1B for all income sources and investment types. When requirements not met: PIE applying variable rates (4) Subsection (5) applies for an income year and a foreign investment variable-rate PIE when— (a) on the last day of the first quarter, the PIE does not meet the requirements of— (i) section HM 13(6) : (ii) section HM 19C : (iii) section HM 55F(3) : (b) the failure is not remedied by the last day of the second quarter. Multi-rate PIE (5) The PIE is treated from the first day of the third quarter as a multi-rate PIE that is not a foreign investment PIE. Transitional rule (6) For the purposes of subsections (1) and (3), if a breach occurs and is not remedied before 1 April 2012, the PIE is treated as a multi-rate PIE that is not a foreign investment PIE. Defined in this Act: amount , foreign investment PIE , foreign investment variable rate PIE , foreign investment zero-rate PIE , income , income year , multi-rate PIE , quarter Section HM 55H: 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 79(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).