A portfolio investment entity (PIE) fund is a tax classification that we choose for the Kernel funds which generally reduces the amount of tax paid, delays when the payment is required and means that we can take care of all the tax obligations, so that individuals don’t need to file a tax return for this investment. Only trusts and companies or individuals who think they have been taxed at the wrong Prescribed Investor Rate (PIR), would need to file a return.
Distributions paid throughout the year by the Kernel funds are not taxed. Most investors will pay their PIE tax after the end of the tax year (31 March), in April. The only exception to this is when an investor sells a significant part of their holdings; at that time PIE tax is also payable.