Section HF 4 — Income Tax Act 2007: What constitutes a Maori authority distribution?

HF 4 What constitutes a Maori authority distribution? Transfer of value (1) A transfer of value from a Maori authority to a person is a Maori authority distribution if the cause of the transfer is the membership of the person in the Maori authority. Distributions (2) A Maori authority distribution includes an amount advanced to a member by a Maori authority, to the extent to which the advance is not a genuine investment by the authority entered into but in effect a distribution of an amount that falls within sections BD 1(1) and CA 1(2) (which relate to amounts that are income). Taxable bonus issues (3) A taxable bonus issue made by a Maori authority to a member is a taxable Maori authority distribution. Exclusion: services (4) A Maori authority distribution does not include the provision of services to a person by a Maori authority. Distributions with credits attached (5) A Maori authority distribution includes the amount of a Maori authority credit attached to it. Dividends (6) A Maori authority distribution that, but for this subsection, would be a dividend for a member, is treated as not being a dividend except for the purposes of section CW 10 (Dividend within New Zealand wholly-owned group). Value of distribution by reference to market values (7) For the purposes of this section, if the transfer of value is— (a) the disposal of property to a member without consideration, or for a consideration that is less than the market value of the property, the value of the Maori authority distribution is the amount by which the market value of the property is more than the consideration; and (b) the acquisition of property from a member for a consideration that is more than the market value of the property, the value of the Maori authority distribution is the amount by which the market value is less than the consideration. Defined in this Act: amount , dividend , Maori authority , Maori authority credit , member , taxable bonus issue , taxable Maori authority distribution , transfer of value , Compare: 2004 No 35 ss HI 4(1), (2) , HI 5(4) , HI 7