Section GB 43 — Income Tax Act 2007: Reconstruction of Maori authority credit arrangements to obtain tax advantage

GB 43 Reconstruction of Maori authority credit arrangements to obtain tax advantage Reconstruction of either type of arrangement (1) In the case of an arrangement for a share disposal or issue as described in section GB 42(2) or a streaming arrangement as described in section GB 42(3) , if the Commissioner decides this subsection should apply, the following paragraphs apply: (a) a member who would get a tax credit advantage from the arrangement is denied it: (b) a Maori authority that would get both a tax credit advantage and an account advantage from the arrangement has a debit to its Maori authority credit account in the tax year in which the arrangement began. Reconstruction of streaming arrangement (2) In the case of a streaming arrangement as described in section GB 42(3) in which the Maori authority is the only party, or if the Commissioner decides this subsection should apply, the Maori authority has a debit to its Maori authority credit account in the tax year in which the arrangement began. Subsection (1) does not apply to the extent to which this subsection applies to the arrangement. Amount of adjustment (3) The amount of the credit denied under subsection (1)(a) and the debit arising under subsection (1)(b) or (2) is in each case the amount of the Maori authority credit that the Commissioner determines is subject to the arrangement. Commissioner’s powers of determination (4) The Commissioner may make determinations for the purposes of this section under section 90AG of the Tax Administration Act 1994. Some definitions (5) In this section and section 90AG of the Tax Administration Act 1994,— account advantage means a credit arising to a Maori authority credit account under sections OK 2 to OK 9 (which relate to credits arising to Maori authority credit accounts) tax credit advantage means a tax credit allowed under section LO 1 (Tax credits for Maori authority credits). Defined in this Act: account advantage , arrangement , Commissioner , Maori authority , Maori authority credit , Maori authority credit account , member , notice , tax credit advantage , tax year , Compare: 2004 No 35 s GC 27A(5), (6), (10)