Section RE 16 — Income Tax Act 2007: Taxable Maori authority distributions

RE 16 Taxable Maori authority distributions When this section applies (1) This section applies when a Maori authority makes a payment of resident passive income that consists of a taxable Maori authority distribution in the form of a sum of money or an amount of a credit in the balance of an account with the Maori authority. Calculation of amount of tax (2) The amount of tax for the payment that the Maori authority must withhold and pay to the Commissioner is calculated using the formula— (tax rate × (distribution amount + credit attached)) – credit attached. Non-cash amounts (3) Despite subsection (2), if the resident passive income is not paid in cash, the amount of tax for the payment that the Maori authority must pay to the Commissioner is calculated using the formula— (tax rate × distribution amount) − credit attached. 1 − tax rate Definition of items in formulas (4) In the formulas in subsections (2) and (3),— (a) tax rate is the basic rate set out in schedule 1, part D, clause 6 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits): (b) distribution amount is the amount of the distribution before the amount of tax is determined: (c) credit attached is the amount of the Maori authority credit attached to the distribution. Defined in this Act: amount , amount of tax , Commissioner , Maori authority , Maori authority credit , pay , resident passive income , taxable Maori authority distribution , Compare: 2004 No 35 s NF 2(1)(e), (f) Section RE 16(4)(a) tax rate : amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).