Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Maori authority credit accounts (MACA)

OK 12: MACA refund of income tax or transfer of excess tax to period or tax type

You could also call this:

“Rules for Māori authority tax refunds and transfers”

When you’re part of a Maori authority, there are rules about what happens when you get a refund of income tax or move extra tax to another period or type of tax. This is called a Maori authority debit.

If you get a refund of income tax or move extra tax, the amount becomes a debit in your Maori authority credit account. However, this doesn’t include refunds from before the 2004-2005 tax year, refunds that are no more than a certain type of debit, or refunds from times when you didn’t have a credit account.

The amount of the debit might be adjusted if you only had a credit account for part of the tax year. There’s a special calculation for this using the number of days you had the account and the amount of the refund.

The date of the debit depends on whether it’s a refund or a transfer of extra tax. For a refund, it’s the day you get the refund. For a transfer, it could be the day you ask for the transfer or the day the transfer happens, depending on when you ask and how much credit you have.

There are some exceptions to these rules, which you can find in section OK 14B.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519364.

Topics:
Money and consumer rights > Taxes
Māori affairs > Treaty of Waitangi
Previous

OK 11: MACA transfer of excess tax to other Maori authorities, or

“Transfer of excess tax between Māori authorities”

Next

OK 13: MACA payment of other taxes, or

“Using overpaid income tax to settle other tax debts for Māori authorities”

Part O Memorandum accounts
Maori authority credit accounts (MACA)

OK 12MACA refund of income tax or transfer of excess tax to period or tax type

  1. A Maori authority has a Maori authority debit for the amount of a refund of income tax paid to the Maori authority or for a transfer of excess tax to another period or tax type of the Maori authority under section 173L of the Tax Administration Act 1994.

  2. The amount of a debit under subsection (1) does not include—

  3. a refund of income tax paid for a tax year before the 2004–05 tax year; or
    1. a refund of income tax paid to the Maori authority that is no more than the debit under section OK 15; or
      1. a refund of income tax paid for a period when the Maori authority credit account was not maintained.

        1. The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 4 (refund of income tax), row 4B (transfer from MACA under section 173L of the Tax Administration Act 1994), row 4C (transfer from MACA under section 173L of the Tax Administration Act 1994), and row 4D (transfer from MACA under section 173L of the Tax Administration Act 1994). The Maori authority debit in subsection (2)(b) is referred to in table O18: Maori authority debits, row 7 (debit for loss of shareholder continuity).

        2. If a Maori authority maintains a Maori authority credit account for only part of a tax year, the amount of the debit is calculated using the formula—

          (account days ÷ 365) × refund.

          Where:

          • In the formula,—

          • account days is the number of days in the tax year for which the Maori authority maintains the Maori authority credit account:
            1. refund is the amount of the refund.

              1. The debit date for—

              2. a refund of income tax is the day the refund is made; or
                1. an amount of excess tax transferred in a tax year (the transfer year) to another period or tax type of the Maori authority under section 173L of the Tax Administration Act 1994, is—
                  1. despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the transfer year; or
                    1. despite section 173L(2)(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the MACA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the tax year under section 173L or 173M of that Act and section RC 32(5)(b), and the MACA to which the transfer is made is in credit; or
                      1. the date of the transfer under section 173L of that Act, if the requirements of neither subparagraph (i) nor subparagraph (ii) are met.

                      2. This section does not apply to an amount that gives rise to a debit under section OK 14B.

                      Compare
                      Notes
                      • Section OK 12 heading: replaced, on , by section 144(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                      • Section OK 12(1): replaced, on , by section 144(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                      • Section OK 12(3): amended, on , by section 144(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                      • Section OK 12(6): replaced, on , by section 144(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                      • Section OK 12(7) heading: added (with effect on 1 April 2008), on , by section 441(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                      • Section OK 12(7): added (with effect on 1 April 2008), on , by section 441(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).