If you invest in a PIE fund tax is calculated when you sell a significant proportion of units in a fund and at the end of the financial year (31 March). We keep a record of how much tax needs to be paid (or returned to you) at all times.
Kernel will email investors an estimate of their PIE tax at the end of March each year. This is followed by another email in early April with the final figure and investors then have a time frame in which to deposit money to pay the tax.
Investors can choose not to deposit money, in which case we will use the available balance in their wallet and/or sell just enough units in their largest holding in order to cover the tax liability. Once those have been processed, we pay the funds to the IRD before the end of April.
Where do I find more details about my PIE income?
We produce an annual tax summary called PIE Tax Certificate which you will find in “My Documents” section when you log in to your Kernel account. This downloadable document shows the amount of income, tax credits, tax paid and your PIR.