If you have any outstanding tax liability payable at the end of the tax year, we will pay this to the IRD on your behalf.
Prior to the PIE tax year end, we will send you an e-mail with a provisional calculation of your tax obligation. This will be followed by another email in early April once the final PIE calculations have been completed. After around a week, we will debit your InvestNow transaction account for the amount of PIE tax payable. However, if you do not have sufficient funds available in your Transaction account at the time, we will sell enough units from the largest holding in your portfolio to cover the tax liability.
Please note that we rely on you electing the correct PIR when you open an account – if your InvestNow PIR needs to be changed or is not correct, you can contact us to have it updated.
For Smartshares ETFs, PIE tax is always paid at 28% as they are listed PIEs. If you invest in Smartshares and have a tax rate lower than 28%, the excess tax paid by a fund may be able to be used to reduce the tax payable on other income that you derive at the end of each income year by including the distributions from the fund(s) in your tax return. Please refer to Smartshares’ Other Material Information – Tax document, available from the Disclose register, for further details.
Where a rebate exists we will credit this to your transaction account as part of our year end tax processes. PIE tax rebates are usually received in May.
For more information about how PIE tax works, please refer to our article “PIEs and PIE tax – your questions answered”.