First index funds have rulings renewed

The future of 11 index funds looks brighter after IRD renewed their binding rules.

Thursday, July 5th 2001, 8:52PM

The managers of 11 index funds breathed a collective sigh of relief after the Inland Revenue Department renewed rulings allowing them to keep their capital gains free tax status.

Uncertainty had surrounded the future of the funds after an IRD review of index funds in December. The review tightened up on the rules covering capital-gains tax.

Since December several funds have had to renew the binding rulings they secured from IRD on their capital-gains tax status. However, they were only given temporary extensions that expired on June 30.

The short-term rulings are understood to have been issued so the department could work through several issues.

Yesterday the department said binding rulings had been issued for 11 funds whose temporary rulings ran out on June 30.

The rulings were issued for the standard three-year period, a spokesman said.

Taxpayer confidentiality meant he could not name the funds or give details about the rulings.

However, the spokesman said the rulings were not necessary identical to the previous ones given. This was because of issues raised both by the department and fund mangers, he said.

It is understood major funds including AMP's WiNZ, Tower's Tortis range and the Stock Exchange's TeNZ fund form part of this group of 11 funds.

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