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GB 41: FDPA arrangements for carrying amounts forward
or “Rules for carrying forward foreign dividend account balances (no longer applies)”
You could also call this:

“Rules to prevent unfair use of Māori authority tax credits”

If you’re part of a Maori authority, you need to know about something called Section GB 43. This section applies when someone tries to get a tax advantage in certain ways.

One way this can happen is when people buy or sell shares in a Maori authority that’s a company. If someone thinks they might get a taxable distribution with a Maori authority credit, and they or someone else might get a tax advantage from this credit, it could be a problem. This is especially true if getting the tax advantage is one of the main reasons for doing this, not just a side effect.

Another way this can happen is when a Maori authority gives out taxable distributions. If the authority tries to give different amounts of credits to different members, giving more to those who can get a tax advantage, this could also be a problem.

When we talk about ‘higher credit value’, we mean either a distribution that has a Maori authority credit when another doesn’t, or when the credit ratio (which is explained in section OK 19(2)) is higher for one distribution than another.

Remember, these rules are there to make sure everyone is treated fairly when it comes to taxes and Maori authority credits.

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Next up: GB 43: Reconstruction of Maori authority credit arrangements to obtain tax advantage

or “Rules to prevent unfair tax advantages in Maori authority credit arrangements”
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Part G Avoidance and non-market transactions
Avoidance: specific

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
    1. 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
      1. a party might reasonably have expected that a party will or will not be able to obtain a tax advantage from the credit; and
        1. a purpose of the arrangement is that a party will obtain a tax advantage; and
          1. the purpose is not a merely incidental one.

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

            2. the arrangement is in relation to 1 or more taxable Maori authority distributions by a Maori authority during 1 or more tax years; and
              1. under the arrangement, the Maori authority streams—
                1. the distributions; or
                  1. the attachment of Maori authority credits; and
                  2. 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.

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

                    2. the distribution has a Maori authority credit and the other distribution does not:
                      1. 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)