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Maori Last To Be Told Of Taxation Changes

A new discussion document signals the Government's intention to bring Maori organisations into line with the tax rules that cover other New Zealanders, but Maori seem to be the last to be told, National's Revenue spokesperson Annabel Young said today.

"The document, 'Taxation of Maori Organisations' was released with very little publicity.

"At present, Maori organisations are overtaxed in some areas, but pay less tax in others. After the review, they're likely to be taxed the same as other organisations, yet the IRD has given them the impression that they will get tax concessions.

"A good example is the taxation of child beneficiaries. The rate of tax paid on income distributed to a child by a trust is 39 percent, but the rate of final tax currently paid on income distributed to a child by a Maori trust or Maori authority is 25 percent.

"This review will address this 14 percent difference in tax rates and, as a result, the taxation of Maori child beneficiaries is likely to come into line with that of all children.

"Another example is the double taxation of money where it is distributed by a Maori authority after four years; it is re-taxed on distribution and this is not fair.

"The Government should own up to Maori that this major review is underway and that they are likely to be paying more tax at the end of it," Annabel Young said.

Ends


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