IR3NR Question 14 Maori authority distributions

Maori authorities can make various types of distributions.

Fill in Question 14 if you received any taxable Maori authority distributions between 1 April 2019 and 31 March 2020. The Maori authority that paid you the distributions sends you a 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 already paid on the profits, so 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 portions are taxable and non-taxable
the amount of Maori authority credit.

These amounts, not including any non-taxable distributions, will need to be transferred to the relevant boxes at Question 14.

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. So, 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 IR3NR return would show the following information at Question 14:

Box 14B – $1,000 (made up of $825 + $175)

Box 14A – $175

Non-taxable distributions

Any other distributions received from a Maori authority, which are not taxable in the hands of a Maori authority member, don’t need to be included in the IR3NR return. These amounts are classed as non-taxable distributions and can’t have credits attached.

For more information see the guide Maori authorities (IR487).