VIEWS: 618 PAGES: 1 CATEGORY: Tax Forms POSTED ON: 8/13/2008
This is an example of tax deductible expenses. This document is useful for conducting tax deductible expenses.
Need Help? PIE Tax Statement Readers’ Guide 12 June 2008 Contact your Adviser Christopher Robin Now that your AMP investment is a Portfolio Investment Entity (PIE), tax is calculated and paid in a different way. This guide is designed to help you read and Ph 08 999 9999 understand your Annual Tax Statement. Contact AMP Website: www.amp.co.nz Email: Use website ‘Contact Us’ link are added to your investment income (or loss) to determine your PIE taxable Mr A Sample Ph 0800 800 267 Mon – Thurs 8am to 8pm Prescribed Investor Rate (PIE tax rate) income (or loss). 1 Beech Avenue Fri 8am to 6.30pm Balmoral This is the rate at which your gross tax payable (or rebate) is calculated. Auckland 1003 Fax 0800 509 955 Tax-deductible expenses are shown as a positive amount and taxable rebates Your Prescribed Investor Rate (PIR) will be either 19.5% or 30% (33% prior to Write to: AMP Services (NZ) Limited are shown in the negative. Due to changes made by the IRD, an exception Freepost 170 1 April 2008). If you are unsure of your PIR, the IRD has published a flow chart P O Box 1290 arises if you exited your AMP investment prior to 1 March 2008. If this applies Wellington which is available on www.ird.govt.nz. This flowchart has been reproduced on to you, your Annual Tax Statement will show expenses as a negative amount AMP Investment www.amp.co.nz. Annual Tax Statement for year ending 31 March 2008 and rebates as a positive. You do not need to include your PIE taxable income in your tax return unless Member Name Anthony Sample Member Number 12345 your Annual Tax Statement shows a 19.5% PIR and you were ineligible for IRD Number 12-123-123 this 19.5% rate. If this applies to you, you will need to include the following PIE taxable income (or loss) Prescribed Investor Rate (PIE tax rate)1 33% Statement Period 1 October 2007 to 31 March 2008 amounts in your income tax return: This is the amount on which we calculate your gross tax payable (or rebate). The AMP Investment is a Portfolio Investment Entity (PIE) and has paid or claimed tax on your behalf as detailed below. Where a tax rebate is claimed, further units will be issued to you (See note 4 below). You do not need to include details • PIE Taxable Income (or Loss) of your AMP Investment income in your tax return, unless your Prescribed Investor Rate is incorrect by being too low. • Tax credits claimed Gross tax payable (or rebate) The following is a breakdown for your information. Not all growth on investments is taxable and details on the total performance of particular investments may be found in the latest AMP Investments Investment Report, available on • Net PIE tax paid (or rebated) www.amp.co.nz. Your PIE taxable income (or loss) multiplied by your PIR of either 19.5% or 30% (33% prior to 1 April 2008) gives your gross tax payable (or rebate). Tax Summary – AMP Investment Investment Income (or loss) For more Investment Tax- PIE Gross Tax Tax Net PIE Tax income deductible Taxable payable (or Credits payable (or information on This is your share of the taxable income (or loss) from your investment fund. Tax credits claimed how fees and tax 3 4 (or loss) Expenses income rebate) Claimed rebate due) (or taxable (or loss) are calculated on your investment It is important to note that not all growth on your investment is taxable, and please read the not all losses on your investment may be deductible. 2 rebates) latest AMP Investment This is your share of the investment fund’s tax credits. Statement and AMP’s PIE Tax Total $2000.00 $26.88 $1,973.12 $651.13 $46.30 $604.83 Statement Readers Details on the total performance of particular investments may be found in the Guide available on latest applicable AMP Investment Report available on www.amp.co.nz Net PIE tax payable (or rebate due) www.amp.co.nz Notes: 1 If the Prescribed Investor Rate (PIE tax rate) is lower than your correct rate for the year ending 31 March 2008, you will need to include the PIE Taxable income (or loss, Tax Credits Claimed and Net PIE Tax payable (or rebate due) in your income tax return. This is your PIE tax payable (or rebate) due to or (from) the IRD. Tax-deductible expenses (or taxable rebates) 2 Expenses are shown as a positive amount and are tax deductible. Rebates are shown as a negative amount and are taxable. Please refer to the PIE Tax Statement Readers’ Guide for further details regarding this item. 3 4 Represents the combined total of each tax credit claimed (deducted) to determine the Net PIE Tax payable or (rebate due). This is the tax payable (or rebate due) to you, and will be reported in your next half-yearly statement. A Net PIE Tax payable is collected by If this amount is positive, this is the tax AMP has paid to the IRD on your behalf. redeeming and cancelling units from your plan. A (rebate due) is added to your plan by the issue of additional units. Tax-deductible expenses are expenses for the ongoing management and AMP has redeemed some of your units to pay this tax. If you have transferred or withdrawn from the fund, the rebate will be paid into the same bank account as the withdrawal. administration of your AMP investment charged direct to you as an investor, for example: member fees and trustee and administration fees. We have deducted If this amount is negative, this is the rebate due to you from the IRD. AMP has these expenses from your investment income (or loss) to determine your PIE claimed this rebate from the IRD for you. We will pay you this rebate once the AMP Services (NZ) Limited Member Number 99999 Page 1 of 1 taxable income (or loss). money is received from the IRD. We have not deducted the following expenses: Ordinarily, we will add the rebate to your portfolio by the issue of additional units. This will be reported in your next annual or half-yearly statement. If you • Entry or Contribution fees; and have fully withdrawn from the fund, and are an AMP member who is: • Withdrawal or Exit fees. • Not transferring to a new superannuation scheme provider, we will pay your Please refer to your annual or half yearly statement to determine if these rebate into your bank account. expenses have been charged against your AMP investment. If so, you may wish • If you are transferring to a new superannuation scheme (including AMP or to consult your usual tax adviser to see if you can deduct these expenses in your KiwiSaver scheme providers), we will pay your rebate to your new scheme income tax return. provider, to be applied to your new plan. Taxable rebates are income earned on your investment applied direct to you as an investor, for example an adjustment to expenses. Rebates are taxable and The technical terms used in this guide and your Annual Tax Statement are tax terms and if you would like more detail clarifying these terms or require tax advice, we recommend you speak with your tax specialist or the IRD on 0800 227 774. This guide and your Annual Tax Statement is based on AMP Services (NZ) Limited’s (AMP) understanding of the PIE tax rules as at 31 March 2008. These rules are complex and may change for future tax years. AMP accepts no responsibility whatsoever for your supply of an incorrect Prescribed Investor Rate (PIR). AMP may record its telephone conversations with you and use such recordings to document your provided PIR Version 0.2
Pages to are hidden for
"Tax Deductible Expenses"Please download to view full document