Section OK 16 — Income Tax Act 2007: MACA breach of Maori authority credit ratio

OK 16 MACA breach of Maori authority credit ratio Debit (1) A Maori authority has a Maori authority debit for a breach in a tax year of the Maori authority credit ratio under section OK 20(3) for an amount calculated using the formula— (net distributions × Maori authority credit ratio) – credits attached. Definition of items in formula (2) In the formula,— (a) net distributions is the total amount of all taxable Maori authority distributions made by the Maori authority during the tax year, excluding the amount of Maori authority credits attached to the distributions: (b) Maori authority credit ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios) or, if less, the greatest Maori authority credit ratio of all taxable Maori authority distributions made by the Maori authority during the tax year: (c) credits attached is the total amount of all Maori authority credits attached to distributions paid by the Maori authority during the tax year. Ratio change declaration (3) A debit under subsection (1) does not arise if the Maori authority provides a ratio change declaration under section OK 20(5) . Table reference (4) The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 8 (breach of Maori authority credit ratio). Debit date (5) The debit date is the last day of the tax year. Defined in this Act: amount , distribution , Maori authority , Maori authority credit , Maori authority credit account , Maori authority credit ratio , Maori authority debit , tax year , taxable Maori authority distribution , Compare: 2004 No 35 ss MK 5(1)(d), (2)(d) , MK 7(5)