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Tax Administration Act 1994

Penalties - Civil penalties

140CB: Maori authority distribution penalty tax payable where end of year debit balance

You could also call this:

"Extra tax for Maori authorities with end of year debit balance"

Illustration for Tax Administration Act 1994

You are a Maori authority and you have to pay more income tax because of an end of year debit balance. You have to pay this extra tax under sections OK 21 and OK 22 of the Income Tax Act 2007. You also have to pay a special tax called Maori authority distribution penalty tax. You pay 10% of the extra income tax as Maori authority distribution penalty tax. This penalty tax is calculated based on the amount of further income tax you have to pay. You pay this penalty tax in addition to your other taxes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM356191.

Topics:
Money and consumer rights > TaxesMāori affairs > Māori land
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Part 9Penalties
Civil penalties

140CBMaori authority distribution penalty tax payable where end of year debit balance

  1. A Maori authority that is liable to pay further income tax under sections OK 21 and OK 22 of the Income Tax Act 2007 for an end of year debit balance is also liable to pay a special tax known as Maori authority distribution penalty tax.

  2. The amount of the Maori authority distribution penalty tax is 10% of the amount of further income tax that gives rise to the liability for the Maori authority distribution penalty tax.

Notes
  • Section 140CB: inserted, on (applying for 2004–05 and subsequent income years), by section 121(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
  • Section 140CB(1): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).