GB 42Maori authority credit arrangements to obtain tax advantage

1. Section GB 43 applies if an arrangement to obtain a tax advantage arises as described in either subsection (2) or (3).

2. An arrangement is an arrangement to obtain a tax advantage if—

3. the arrangement is for the disposal or issue of a share in a Maori authority that is a company; and
4. a party to the arrangement might reasonably have expected that a taxable Maori authority distribution would be paid in relation to the share with a Maori authority credit attached; and
5. a party might reasonably have expected that a party will or will not be able to obtain a tax advantage from the credit; and
6. a purpose of the arrangement is that a party will obtain a tax advantage; and
7. the purpose is not a merely incidental one.

8. An arrangement is an arrangement to obtain a tax advantage if—

9. the arrangement is in relation to 1 or more taxable Maori authority distributions by a Maori authority during 1 or more tax years; and
10. under the arrangement, the Maori authority streams—
    1. the distributions; or
    2. the attachment of Maori authority credits; and
11. the streaming will give a higher credit value to a member who will obtain a tax advantage from the higher credit value than to a member who will not or may reasonably be expected to obtain a lesser benefit.

12. A taxable Maori authority distribution has a higher credit value than another distribution if either of the following applies:

13. the distribution has a Maori authority credit and the other distribution does not:
14. the Maori authority credit ratio under section OK 19(2) (Maori authority credits attached to distributions) of the distribution is higher than that of the other distribution.

Compare

• 2004 No 35 s GC 27A(1)–(3)