IR4 Question 15 Maori authority distributions

Maori authorities can make various types of distributions.

Fill in Question 15 if you received any taxable Maori authority distributions between 1 April 2018 and 31 March 2019. The Maori authority that paid you the distribution will send you a Maori authority distribution statement.

Credits attached to distributions

The Maori authority may attach a credit to the distribution it makes to members. This credit will be classified as a Maori authority credit and is part of the tax the Maori authority has already paid on its profits, so the distributions are not taxed twice.

What to show in your return

Your Maori authority distribution statement shows the amount of:

the distribution made to you, including the taxable portion and the non-taxable portion
Maori authority credit.

These amounts, not including any non-taxable distribution, will need to be transferred to the relevant boxes at Question 15.

Example

A Maori authority makes a pre-tax profit of $10,000. It pays tax on this profit of $1,750 (Maori authority tax rate of 17.5%) and distributes the entire profit to its 10 members. Each member will receive $825 as a cash distribution and $175 of Maori authority credits.

Each member of the authority liable to file an IR4 return would show the following information at Question 15:

Box 15B – $1,000 (made up of $825 + $175)

Box 15A – $175