New Zealand Acts

WHAKATŌHEA CLAIMS SETTLEMENT ACT 2024 - SECT 204

204 Election by relevant subsidiary to be Māori authority

1 This section applies if a relevant subsidiary—

a) elects under section HF 11 of the Income Tax Act 2007 to become a Māori authority; and

b) when the election is made, has an undistributed charitable amount arising from income that was exempt income under sections CW 41 and CW 42 of the Income Tax Act 2007 when the income was derived.

2 The undistributed charitable amount must be calculated on the date on which the relevant subsidiary ceases to be a tax charity under section 183(1) .

3 A distribution of the undistributed charitable amount by the relevant subsidiary after its election to be a Māori authority is—

a) a distribution from exempt income of the subsidiary if the distribution is for a charitable purpose; or

b) if paragraph (a) does not apply, a taxable Māori authority distribution.

4 A distribution that is a taxable Māori authority distribution under subsection (3)(b) must be disregarded for the purposes of section HF 8 of the Income Tax Act 2007 .