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OK 21: Further income tax for closing debit balance
or “Maori authorities may owe extra tax for negative account balances”
You could also call this:

“Tax payment when a Māori authority changes status”

When you’re part of a Maori authority, you need to know about something called further income tax. This is a special kind of tax that you might have to pay if your Maori authority stops being a Maori authority.

If your Maori authority has what’s called a “debit balance” in its Maori authority credit account just before it stops being a Maori authority, you have to pay further income tax. You need to pay this tax to the Commissioner on the same day that your Maori authority stops being a Maori authority.

There’s a special rule if your Maori authority stops being a Maori authority on the last day of the tax year. In this case, you have to pay further income tax under this rule, not under section OK 21.

The rules about further income tax are a bit different from normal income tax rules. When it makes sense, other parts of this law and the Tax Administration Act 1994 will treat further income tax like income tax. They might need to be changed a little bit to make sense for further income tax. But these rules don’t change the imputation rules or section 101 of the Tax Administration Act 1994.

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Next up: OK 23: Further income tax paid satisfying liability for income tax

or “Māori authorities can use additional tax credits to pay income or provisional tax”
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Part O Memorandum accounts
Maori authority credit accounts (MACA)

OK 22Further income tax paid when Maori authority no longer Maori authority

  1. A Maori authority is liable to pay further income tax for a debit balance in its Maori authority credit account immediately before the Maori authority stops being a Maori authority.

  2. The Maori authority must pay the further income tax to the Commissioner by the day on which the Maori authority stops being a Maori authority.

  3. A Maori authority that stops being a Maori authority on the last day of a tax year is liable for further income tax under this section and not under section OK 21.

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

  5. 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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