Individual income tax return guide 2011 - Inland Revenue Department

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Investments in portfolio investment entities (PIEs)
Certain PIEs attribute the net income/loss and tax credits they derive
across their investors. Individual investors generally don’t include the
attributed income or loss in their tax return. You can only claim a loss
when it has the zero rate applied. In all other cases you cannot claim a
loss from your PIE.
Each year, the PIE is required to provide an investor statement setting out
the details of the income/loss and the tax it has paid on the income it
has attributed to you.
Where your PIE has calculated the tax using a prescribed investor
rate lower than your correct rate or you have exited a PIE that doesn’t
calculate tax when an investor exits, you may need to include the income
in your return to pay the tax.
Where you’re required to include attributed PIE income in your return,
show the income and tax paid/credit where the rate lower than your
correct rate has been applied. Include any tax credits shown on your
PIE’s investor statement where you’ve exited from a PIE that zero-rates
exiting investors. You can show the net income or loss (after adjusting
for the investor level fees) in Question 17B and the general tax credits
shown at 17A. Where any specified tax credits (eg, RWT) are shown,
include these in the appropriate question on the return.
If you’re claiming Working for Families Tax Credits (WfFTC) and have to
declare PIE income on your return, complete an Adjusting your business
income (IR 215) form. This will ensure the PIE income is not included
when working out your WfFTC entitlement.