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Income Tax Act 2007

Tax credits and other credits - Tax credits for Maori authority credits

LO 3: Application of Maori authority distribution ratio

You could also call this:

“Rules for tax credits on Māori authority distributions”

When you receive a taxable Maori authority distribution with a tax credit, there’s a limit to how big that credit can be. This limit is called the maximum permitted ratio.

If the credit you get is bigger than this maximum ratio, it will be reduced. The amount it’s reduced by is the difference between the credit you got and the maximum allowed.

You can find out more about how to calculate the maximum permitted ratio in section OA 18.

This rule applies to tax credits you get under section LO 1.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518271.

Topics:
Money and consumer rights > Taxes
Māori affairs > Treaty of Waitangi
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LO 2B: Credit of RSCT for Maori authority credit, or

“Tax credit for retirement scheme contributors using Māori authority credits”

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LO 4: When income tax unpaid, or

“Tax credits for Māori authority dividends may be reduced if the authority doesn't pay its tax”

Part L Tax credits and other credits
Tax credits for Maori authority credits

LO 3Application of Maori authority distribution ratio

  1. This section applies when a person who has a tax credit under section LO 1 derives a taxable Maori authority distribution that has a Maori authority credit ratio greater than the maximum permitted ratio calculated under section OA 18 (Calculation of maximum permitted ratios).

  2. The person’s credit is reduced by an amount equal to the amount by which the credit is greater than the maximum permitted ratio.

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