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LO 2: Beneficiaries of trusts
or “How tax credits work for trust beneficiaries receiving Maori authority distributions”
You could also call this:

“Tax credit for retirement scheme contributors using Māori authority credits”

If you’re a retirement scheme contributor and you add a Maori authority credit to someone’s retirement scheme contribution in a year, you can get a credit of retirement scheme contribution tax (RSCT). The credit you get will be the smaller amount between the Maori authority credit and the RSCT you owe on the contribution.

Sometimes, the Maori authority credit might be more than the RSCT you owe. If this happens, two things will occur. First, the extra amount will be treated as a Maori authority credit attached to a taxable Maori authority distribution from you to the person who received the contribution. Second, if you’re responsible for withholding the RSCT, you need to tell the person about this extra credit within 30 days of making the contribution.

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Next up: LO 3: Application of Maori authority distribution ratio

or “Rules for tax credits on Māori authority distributions”
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Part L Tax credits and other credits
Tax credits for Maori authority credits

LO 2BCredit of RSCT for Maori authority credit

  1. A retirement scheme contributor who attaches a Maori authority credit to a retirement scheme contribution for a person in an income year has a credit of RSCT equal to the lesser of—

  2. the amount of the Maori authority credit:
    1. the liability of the contributor for RSCT on the contribution.

      1. If the amount of the Maori authority credit is more than the liability of the contributor for RSCT on the contribution,—

      2. the amount of the excess is treated as a Maori authority credit attached to a taxable Maori authority distribution from the contributor to the person; and
        1. the person responsible for withholding the RSCT must, within 30 days of the contribution, notify the person of the amount of the excess credit.

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          Notes
          • Section LO 2B: inserted, on , by section 449 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).