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OK 20: MACA benchmark distribution rules
or “Rules for Māori authorities when distributing money multiple times in a tax year”
You could also call this:

“Maori authorities may owe extra tax for negative account balances”

If you’re a Maori authority, you need to know about something called ‘further income tax’. This is a special kind of tax you might have to pay if your Maori authority credit account has a debit balance at the end of the tax year. A debit balance means you owe money in that account.

If you do have a debit balance, you’ll need to pay the further income tax to the Commissioner. You have to do this by 20 June after the tax year ends.

The rules for further income tax are similar to the rules for regular income tax. When the government applies these rules, they treat further income tax like income tax. They might need to change the rules a bit to make them work for further income tax. But remember, these rules don’t change the special rules about imputation or section 101 of the Tax Administration Act 1994.

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Next up: OK 22: Further income tax paid when Maori authority no longer Maori authority

or “Tax payment when a Māori authority changes status”
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Part O Memorandum accounts
Maori authority credit accounts (MACA)

OK 21Further income tax for closing debit balance

  1. A Maori authority is liable to pay further income tax for the amount of a debit balance in its Maori authority credit account at the end of a tax year.

  2. The Maori authority must pay the further income tax to the Commissioner no later than 20 June following the end of the tax year.

  3. When it is appropriate for the purposes of this section, the other sections of this Act and the Tax Administration Act 1994—

  4. apply to further income tax as if they addressed further income tax and not income tax; and
    1. apply, modified as necessary, to ensure their application to the further income tax rather than income tax; and
      1. do not override the imputation rules and section 101 of the Tax Administration Act 1994.

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