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Income Tax Act 2007

Taxation of certain entities - Maori authorities

HF 3: Applying provisions to Maori authorities

You could also call this:

“How Māori authorities follow special tax rules”

If you’re a Maori authority, you need to follow special rules called the Maori authority rules. These rules are more important than other rules in the Income Tax Act, unless the Act says otherwise.

There are some things you can’t do if you’re a Maori authority. You can’t join together with a company that isn’t a Maori authority. You also can’t be part of a group of companies if any of those companies aren’t Maori authorities. And if you’re a co-operative company, all your shareholders must be Maori authorities too.

When it comes to tax losses, Maori authorities have special rules. You can only share your tax losses with other Maori authorities. This means you can only use your tax losses to reduce the income of another Maori authority, and you can only use another Maori authority’s tax losses to reduce your own income. These rules are explained in more detail in section IA 6 and subpart IC of the Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517477.

Topics:
Money and consumer rights > Taxes
Māori affairs > Māori land
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HF 2: Who is eligible to be a Maori authority?, or

“Entities that can choose to become a Māori authority”

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HF 4: What constitutes a Maori authority distribution?, or

“Maori authority distributions explained: What counts and what doesn't”

Part H Taxation of certain entities
Maori authorities

HF 3Applying provisions to Maori authorities

  1. A provision in the Maori authority rules overrides any other provision in this Act that may apply to a Maori authority unless a provision specifically provides otherwise.

  2. A Maori authority must not—

  3. amalgamate with a company that is not a Maori authority; or
    1. be part of a consolidated group that includes a company that is not a Maori authority; or
      1. be a co-operative company if a shareholder is not a Maori authority.

        1. Under section IA 6 (Restrictions on companies grouping tax losses) and subpart IC (Grouping tax losses),—

        2. a Maori authority may subtract from its net income some or all of a tax loss component or loss balance only of another Maori authority:
          1. a Maori authority may use some or all of its tax loss component or loss balance in relation to the net income only of another person who is a Maori authority.

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