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New Zealand law explained for everyone

Income Tax Act 2007

General collection rules - Refunds - Maori authorities

RM 24: Increase in credit balances

You could also call this:

“When your Maori authority credit account balance increases after a loss of shareholder continuity”

If you have a credit balance in your Maori authority credit account, you need to know that it can increase in certain situations. This increase happens when there’s a debit to your account because of a loss of shareholder continuity. The increase is equal to the amount of that debit.

This increase only applies if the debit happens after you’ve paid instalment B of your provisional tax. You can find the due date for instalment B in schedule 3, part A of the Income Tax Act. The increase also needs to happen before the date when your credit balance is worked out under section RM 22 and section RM 23.

Remember, this rule is about increasing your credit balance, not decreasing it. It’s a way to adjust your account after certain changes happen in your Maori authority.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520471.

Topics:
Money and consumer rights > Taxes
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RM 23: Limits on refunds when Maori authority stops being Maori authority, or

“Refund limits for organisations no longer classified as Maori authorities”

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RM 25: Treatment of amounts not refunded, or

“How extra tax paid by Maori authorities is used if it can't be refunded”

Part R General collection rules
Refunds: Maori authorities

RM 24Increase in credit balances

  1. A credit balance is treated as increased by an amount equal to a debit to the Maori authority credit account under section OK 15 (MACA debit for loss of shareholder continuity) arising after the date of payment of instalment B set out in schedule 3, part A (Payment of provisional tax and terminal tax) for the authority’s income year that corresponds to the tax year and before the date on which the credit balance is to be determined under sections RM 22 and RM 23.

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