2008 remedial amendments to portfolio investment entity (PIE) rules relating to RWT and distributions, tax file number requirements and more.

Sections RE 2 and YA 1 of the Income Tax Act 2007 and section 31B(5) of the Tax Administration Act 1994

Several remedial amendments have been made to the portfolio investment entity (PIE) rules. These remedial amendments generally apply from the 2008-09 income year.

Section RE 2 of the Income Tax Act 2007 has been amended to ensure that resident withholding tax does not apply to PIE distributions.

A mistake in the definition of "portfolio investor rate"; in section YA 1 of the Income Tax Act 2007 has been corrected by replacing 33% with 30%.

Section 31B of the Tax Administration Act 1994 has been amended to require portfolio tax rate entities to request a tax file number from new investors as soon as is practicable. A related amendment has been made to the definition of "portfolio investor rate"; in section YA 1 of the Income Tax Act 2007. This will ensure that the 19.5% "portfolio investor rate"; is not available to investors unless they notify the portfolio tax rate entity of their tax file number.