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If you think that it would be difficult for Māori authorities to provide detailed distribution information to Inland Revenue, please explain how this could be made easier.

If you think that it would be difficult for Māori authorities to provide detailed distribution information to Inland Revenue, please explain how this could be made easier.

Comments

Catherine Goldsmith
I personally do not think it would be difficult to give Inland Revenue a total listing of dividends declared by a Maori Authority. I would presume that Inland Revenue would also need to receive a listing of owners who actually received a cheque or payment into their bank account. The big problem to me is that all owners are credited with the dividend and it is shown in the unclaimed dividends accounting even though they do not receive a payment. Because many of these owners have also no IRD Number available there is a resident withholding tax payment made to Inland Revenue on their dividend where it is over $200. I cannot understand the fairness of this point. As you are aware many owners are deceased and have not been succeeded to or unable to be found. I have been thinking about this and I also feel another anomaly is the payment of Kaumatua Grants being treated as a distribution and taxed. I thought these grants would be fairly covered under the community purposes clause in Trust Orders and although paid out of tax paid profits no doubt could be treated in the hands of the recipient as a non taxable income because of the nature of the giving.

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1 month ago
Callum Thompson
This would be unworkable for a Maori Incorporation for the simple reason they can't trace a large number of their shareholders. Unlike a normal company, when a dividend is declared much of it is not physically paid. From the ones I deal with, around 50% of the dividend each year ends up in unclaimed dividends. You would need to look at making the dividends taxable to the recipient at the time of physical receipt rather than when declared, no payment could be made unless an IRD number had been supplied or it had RWT deducted at the non declaration rate.

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1 month ago
Nick D
This will be impossible as the amount of unknown shareholders is large. We have many clients with large numbers of unidentified shareholders.

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1 month ago
Mary H
This consultation document is complicated for our Maori to comment on making the Maori Authority dividends process and system easier. The majority of our MA's (whanau trusts) have trustees who are finding the current tax system complicated without even considering the tax on dividends, if in fact a lot of them account for the small amounts they might distribute. As for the larger Ahu Whenua trusts, well they have accountants, paid administrators to deal with administration. IRD needs to understand the process for the smaller trusts and not lump all Maori Authorities together and have one size fits all.

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2 weeks ago
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