LO 2Beneficiaries of trusts

1. This section applies when a person who has a tax credit under section LO 1 is a beneficiary of a trust and, in that capacity, derives a taxable Maori authority distribution.

2. The person’s credit is limited to an amount calculated using the formula—

   $(person\text{'}s\; distributions\; ÷\; trust\; distributions)\times \; (total\; beneficiary\; credits\; -\; person\text{'}s\; supplementary\; dividend).$

   Where:

3. In the formula,—

4. person’s distributions is the total distributions for the tax year made to the person in their capacity as beneficiary of the trust:
5. trust distributions is the total distributions for the tax year made to all beneficiaries of the trust in their capacity as beneficiaries, and includes all supplementary dividends paid to them:
6. total beneficiary credits is the total Maori authority credits attached to taxable Maori authority distributions and total supplementary dividends for the tax year made to all beneficiaries of the trust in their capacity as beneficiaries:
7. person’s supplementary dividend is the total supplementary dividends for the tax year paid to the person in their capacity as beneficiary of the trust.

Compare

• 2004 No 35 s LB 1(3), (3A)

Notes

• Section LO 2(3)(a): amended (with effect on 1 April 2008), on 23 March 2020, by section 160(1) (and see section 160(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).