New Zealand tax

I prepare the personal self-assessment tax returns for a client who has a large investment portfolio that is managed in New Zealand. On the tax report for the year ended 31 March 2014 there is a new and substantial amount of income from a portfolio investment entity (PIE).

Unfortunately the PIE income has suffered withholding tax in New Zealand at 28%. I would very much welcome advice on where on the client’s self-assessment tax return I should report this income. Perhaps more importantly can the 28% withholding tax be claimed as a foreign tax credit?

Query 18 457 – Kiwi

Reply from Ivor Dowt

The New Zealand (NZ) Inland Revenue’s website says that a portfolio investment entity (PIE) is a type of entity that came into existence on 1 October 2007 and invests the contributions of investors in different kinds of investments.

It goes...