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Income Tax Act 2007

Memorandum accounts - Maori authority credit accounts (MACA)

OK 1: General rules for Maori authorities with Maori authority credit accounts

You could also call this:

“Rules for Māori authorities' tax credit accounts”

If you are a Maori authority, you must keep a Maori authority credit account for each tax year. This account shows the credits and debits that happen during the year. However, you don’t need to keep this account if your rules don’t allow you to give out money to members, or if you only earn income that isn’t taxed (except for some dividends within your group).

Your account can have credits from income tax you’ve paid and from credits attached to dividends you’ve received. It can also have debits from tax refunds you’ve gotten or credits you’ve given out with your own distributions.

The credits in your account are like a record of the tax you’ve already paid. The debits are like a record of tax benefits you’ve used or given out.

There are some general rules about how these accounts work. You can find these rules in sections OA 2 and OA 3.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519340.

Topics:
Money and consumer rights > Taxes
Māori affairs > Treaty of Waitangi
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“How Māori authorities can get tax credits for paying or transferring tax”

Part O Memorandum accounts
Maori authority credit accounts (MACA)

OK 1General rules for Maori authorities with Maori authority credit accounts

  1. A Maori authority must maintain a Maori authority credit account for a tax year. The account is a record of Maori authority credits and Maori authority debits that arise in the account during the tax year. Subsection (2) overrides this subsection.

  2. Subsection (1) does not apply for a period in which—

  3. the constitution or rules of the Maori authority prohibit a distribution of any kind to a member; or
    1. the Maori authority derives only exempt income, disregarding exempt income under section CW 10 (Dividend within New Zealand wholly-owned group).

      1. Credits include an amount of income tax paid during a tax year and an imputation credit attached to a dividend derived by the Maori authority.

      2. Debits may include a refund of income tax and a Maori authority credit attached to a taxable Maori authority distribution paid by the Maori authority.

      3. The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to Maori authority credit accounts.

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      Notes
      • Section OK 1(3): replaced, on , by section 219(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
      • Section OK 1 list of defined terms FDP credit: repealed, on , by section 219(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
      • Section OK 1 list of defined terms FDPA company: repealed, on , by section 219(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).