Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Tax Laws On Maori Authorities To Be Modernised

11 April 2002

The Government will modernise the tax rules on organisations managing Maori assets held in communal ownership, Revenue Minister Michael Cullen and Maori Affairs Minister Parekura Horomia announced today.

"The present rules date back to the early 1950s and have not kept pace with changes in tax law," Dr Cullen said. "As a result, taxpayers can face undue complexity and, in some cases, even double taxation."

Mr Horomia said there had been repeated calls from Maori over the years for the rules to be overhauled as, in their present shape, they were probably inhibiting Maori economic and social development.

"Tax rules specific to Maori authorities will continue to be needed because of the unique way that Maori freehold land and other tribal assets are administered and owned, including communal ownership and restrictions on the ability to sell," Mr Horomia said.

The main features of the proposed legislation are:
ć The definition of "Maori authority" for tax purposes will be tightened to include only organisations that manage Maori assets.
ć New tax rules relating to Maori authorities will be based on the company imputation model.
ć The tax rate applying to Maori authorities will continue to be lower than the company tax rate because most members are taxed at a lower personal tax rate. The new withholding tax rate will reduce from 25 percent to 19.5 percent.

Other changes relate to the "charitable" status of Maori organisations for tax purposes:
ć Entities that qualify as charities will not be excluded from the associated exemption from income tax simply because they benefit people connected by blood ties.
ć Marae on Maori reservations whose funds are solely applied to the administration and maintenance of the marae will qualify for a "charitable" income tax exemption.

"The proposed changes have been the subject of consultation throughout the country with Maori organisations and their advisers, and we are confident that they will be widely welcomed by the Maori community," the Ministers said.

The new rules will be included in the taxation bill to be introduced in May.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Principals' Federation:
End Of National Standards

Today the Minister of Education announced that the Government has stopped the controversial National Standards system of assessment and declared them an arbitrary measure which did not raise children's achievement as the previous Government intended.

"This is such a win for all the principals who never believed in national standards and who, for the past decade, have argued for what is morally right for our nation's young people and their learning," said Cormick. More>>


Public Good: People’s Report On Public Broadcasting And Media Presented

The People’s Commission on Public Broadcasting and Media, was crowdfunded and was informed by an extensive consultation, seeking the views of both those working in Media as well as gathering input both online and in person from ordinary Citizens. More>>


RBNZ To RNZB: PM's Press Conference

Prime Minister Jacinda Adern was joined by Minister of Finance Grant Robertson and Minister for Children Tracey Martin to announce the appointment of Adrian Orr as the new Governor of the Reserve Bank and the name change of the Ministry for Vulnerable Children to ‘Oranga Tamariki - Ministry for Children’. More>>


'Taming Globalised Capital': Why Is Labour Supporting Investment Rules In WTO?

‘Today, we learned the new government has added New Zealand’s name to a proposal designed to lead to foreign investment rules in the WTO at this week’s ministerial meeting in Argentina,’ said Auckland University Professor Jane Kelsey. More>>


Gordon Campbell: On The Politics Of Scaring Voters Back Into Line

Fear has always been a useful mobilising tool in politics… yet in 2017, bogeymen of all shapes and sizes seem to have fallen on hard times. For years, the National party had painted itself as being the only reliable defensive bastion against the terrifying prospect of a centre-left government… More>>


Gordon Campbell: On Drinking Water As A Failure Of Political Leadership

It is almost possible to feel sorry for the Health Ministry in their terrible, no good, very bad week... More>>





Featured InfoPages