And the rich get richer.

Tax loophole emerges for big earners
12:00PM Tuesday July 31, 2007

A tax loophole has been opened up for high income earners with plenty of cash to save.

Plans to tax portfolio investment entities (PIEs) at 30 per cent meant those investments would attract that lower rate rather than the 39 per cent paid by those earning more than $60,000, The Dominion Post reported today.

Someone earning in the top tax bracket with $100,000 in a PIE could save up to $15 a week in tax, it said.

PIEs were normally diversified investment schemes but could be set up as cash PIEs to replace bank accounts.

A spokesman for Finance Minister Michael Cullen said the loophole was not considered an issue.