IR7 Question 13 Maori authority distributions

Maori authorities can make various types of distributions.

Fill in Question 13 if you received any taxable Maori authority distributions. 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”. It is usually part of the tax the Maori authority has already paid on its profits, which means the distributions aren’t taxed twice.

What to show in your return

Your Maori authority distribution statement shows the amount of:

• the distribution made to you, including what portion is taxable and what portion is non-taxable

• Maori authority credit.

Transfer these amounts, leaving out any non-taxable distributions, to the relevant boxes at Question 13.

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 their 10 members. Each member will receive $825 as a cash distribution and $175 of Maori authority credits.

Each member of the authority who has to file an IR7 return would show the following information at Question 13:

Box 13A – $175

Box 13B – $1,000 (made up of $825 + $175)

Non-taxable distribution

You don’t need to include in the IR7 return any other distributions received from a Maori authority that aren’t taxable in the hands of a Maori authority member. These amounts are non-taxable distributions and can’t have credits attached.

For more information read the Maori authority guide (IR487).