Tax Deductible Expenses by MaryJeanMenintigar

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									                                                                                                  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
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