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LO 3: Application of Maori authority distribution ratio
or “Rules for tax credits on Māori authority distributions”
You could also call this:

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

You can get a tax credit when a Maori authority gives you a dividend with a Maori authority credit attached. However, there are some rules about when this might not work out.

If the Maori authority doesn’t have enough money in their Maori authority credit account at the end of the tax year, and they don’t pay the extra tax they owe by the due date, you might not get your full tax credit.

In this case, the Commissioner (that’s the person in charge of taxes) can reduce your tax credit. They’ll work out how much to reduce it based on your share of the unpaid tax.

But don’t worry too much. If the Maori authority pays the tax they owe after the due date, you’ll still get your full tax credit.

Remember, if you want to know more about the due dates or other parts of this rule, you can check out section OK 21 of the law.

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Next up: LO 5: Evidential requirements

or “Evidence needed for tax credit claims”
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Part L Tax credits and other credits
Tax credits for Maori authority credits

LO 4When income tax unpaid

  1. This section applies when—

  2. a person has a tax credit under section LO 1 and a Maori authority credit is attached to a dividend; and
    1. the dividend is paid by a Maori authority that has a debit balance in their Maori authority credit account at the end of the tax year; and
      1. the authority has not paid further income tax by the due date referred to in section OK 21 (Further income tax for closing debit balance).

        1. The Commissioner may reduce the person’s credit by an amount equal to their proportion of the unpaid amount under subsection (1)(c).

        2. To the extent to which a Maori authority remedies the failure after the due date, this section does not apply.

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