The portfolio investment entity (PIE) rules were enacted in 2007 with application from 1 October 2007, to support the introduction of KiwiSaver. The rules remove a number of tax disadvantages for people investing via managed funds that elect to be PIEs.
The PIE amendments contained in this bill are generally of a technical nature and will ensure that the PIE rules reflect existing practice and the intended policy. A number of submissions were received on the technical aspects of these rules.
The bill also rewrites the PIE rules to ensure the rules are consistent with the plain language drafting approach that has been adopted more generally across other parts of the Income Tax Act.
The remedial amendments contained in this bill and the recommendations contained in this report would, if adopted, amend both the current and rewritten PIE rules.