Section OK 20 — Income Tax Act 2007: MACA benchmark distribution rules

OK 20 MACA benchmark distribution rules When this section applies (1) This section applies when a Maori authority pays a taxable Maori authority distribution on more than 1 occasion during a tax year. Benchmark distribution (2) The first distribution of the tax year is the benchmark distribution. Same Maori authority credit ratio (3) The Maori authority credit ratio of a distribution made after the benchmark distribution must be the same as the Maori authority credit ratio of the benchmark distribution. Debit for breach of Maori authority credit ratio (4) A breach of subsection (3) gives rise to a Maori authority debit under section OK 16 (table O18: Maori authority debits, row 8 (breach of Maori authority credit ratio)) for an amount calculated using the formula in section OK 16(1) . Ratio change declaration (5) A Maori authority may notify the Commissioner that the distribution is not part of an arrangement to obtain a tax advantage by providing a ratio change declaration stating that the distribution is not part of an arrangement to which sections GB 35 and GB 36 (which relate to imputation arrangements to obtain a tax advantage) apply. The Maori authority must provide the declaration before the distribution is made, or by a later date if the Commissioner allows. For the purposes of this subsection, the distribution must not be part of an arrangement to obtain a tax advantage. This subsection overrides subsection (4). Defined in this Act: amount , arrangement , benchmark distribution , Commissioner , Maori authority , Maori authority credit ratio , Maori authority debit , notify , pay , tax advantage , tax year , taxable Maori authority distribution , Compare: 2004 No 35 s MK 7(2)–(4)