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.
Our process will be as follows:
1. 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 shall:
- Proportionately sell units in the PIE funds you have in your portfolio
- If you do not have enough units available in your PIE funds to cover the obligation, we will proportionately sell units in any non-PIE Managed Funds you hold on InvestNow
- Should you still not have sufficient units, we will contact you directly to ask you to deposit sufficient monies in to your Transaction account
Prior to the PIE tax year end, we will send you an e-mail with a provisional calculation of your tax obligation. We shall use this opportunity to remind you of how we will meet your PIE tax obligation. If, at the time, it appears that you have insufficient funds in your Transaction account, we shall advise you of the amount you will need to deposit into it to meet any obligation.
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.