Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Terminating provisions

OZ 7B: Maori authority credit ratios for transitional period

You could also call this:

“How Māori authorities manage tax credits during a transition period”

This section talks about how Maori authorities handle their tax credits during a special time period. When a Maori authority gives out money that can be taxed during this time, some special rules apply. These rules are similar to the ones that companies use, but with some changes.

Instead of talking about companies, dividends, and imputation credits, the rules use words like Maori authorities, taxable Maori authority distributions, and Maori authority credits. The rules also change some of the numbers used in calculations.

For example, where a company rule might use 30%, the Maori authority rule uses 19.5%. Where a company rule might use a ratio of 28/72, the Maori authority rule uses 17.5/82.5.

The section explains how to adjust several other rules to fit Maori authorities. It changes references to specific sections of the law to point to the right places for Maori authorities. It also removes some parts of the rules that don’t apply to Maori authorities.

These changes help Maori authorities calculate their tax credits correctly during this special time period.

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 It might be out of date or be missing some parts.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=DLM3545211.

Topics:

Money and consumer rights > Taxes

Māori affairs > Treaty of Waitangi

OZ 7: Memorandum accounts in transitional period, or

“Rules for special tax records during a set timeframe”

OZ 8: Attaching imputation credits: maximum permitted ratio, or

“Limit on tax credits a company can add to dividends during special periods”

Part O Memorandum accounts
Terminating provisions

OZ 7BMaori authority credit ratios for transitional period

This section applies when a Maori authority makes a taxable Maori authority distribution in the transitional period referred to in section OZ 7.
Sections OZ 8 to OZ 11 and OZ 13 apply for the transitional period to the Maori authority and the taxable Maori authority distribution as if,—
for each section,—
1. a reference to a company had been replaced by a reference to a Maori authority:
2. a reference to a dividend had been replaced by a reference to a taxable Maori authority distribution:
3. a reference to an imputation credit account had been replaced by a reference to a Maori authority credit account:
4. a reference to an imputation credit had been replaced by a reference to a Maori authority credit:
5. a reference to a benchmark dividend had been replaced by a reference to a benchmark distribution:
6. a reference to an imputation ratio had been replaced by a reference to a Maori authority credit ratio:
in section OZ 8(2), the reference to 30% had been replaced by a reference to 19.5%:
in section OZ 9,—
1. in subsection (1)(b), the reference to sections OB 61(4) and OC 28(4) had been replaced by a reference to section OK 20(3):
2. in subsection (1)(c)(ii), the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
3. in subsection (3)(b), the reference to a ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5:
in section OZ 10,—
1. in subsection (1)(b), a reference to a ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5 and a reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
2. subsection (1)(b)(ii) and (iii) were omitted:
3. in subsection (2), the reference to section LE 8 had been replaced by a reference to section LO 3:
4. in subsection (2), the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
in section OZ 11,—
1. in subsection (1)(b)(i), the reference to a ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5 and the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
2. subsection (1)(b)(ii) and (iii) had been omitted:
3. in subsection (1)(c), a reference to a new company tax rate person had been replaced by a reference to a Maori authority that uses a 17.5% basic tax rate for the 2011–12 income year or later income years:
4. in subsection (2), in the formula, the figure 0.28 had been replaced by the figure 17.5:
5. in subsection (3), the reference to section LE 1(1) had been replaced by a reference to section LO 1(1):
6. subsections (4) and (5) had been omitted:
in section OZ 13,—
1. in subsection (1), the reference to the ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5 and the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5:
2. in subsection (2), the reference to the ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5.

Notes

Section OZ 7B: inserted (with effect on 1 October 2010), on 21 December 2010, by section 120 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section OZ 7B(2)(a)(vii): repealed, on 1 April 2017, by section 249(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 7B(2)(d)(iii): amended, on 1 April 2017, by section 249(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section OZ 7B(2)(e)(v): amended, on 1 April 2017, by section 249(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).