From 1 April 2020, the reporting requirements for investment income have changed.
If you make taxable distributions you need to send us the following information after each payment period:
- the name, IRD number and contact address of the authority
- the date the distribution is made
- the total amount of distributions made
- the total amount of tax withheld
- the total amount of Māori authority credits attached
- the Māori authority credit ratio.
The following information is required for each of the income recipients who received a distribution:
- their name
- their contact details (email, street address or mobile phone number)
- the amount and type of income paid to them
- the tax withheld
- the date the tax was withheld
- the Māori authority credits attached, if any.
If it is available, you need to provide the following information for each of the income recipients who received a distribution:
- IRD number
- date of birth.
You must provide the name of any joint owners. If held, you also need provide the following information for any joint owners:
- IRD number
- date of birth
- contact address.
Information must be provided electronically unless you have an exemption.
Reports are due by the 20th of the month following the month in which the you made the taxable distribution. You only need to report for the periods in which you make a distribution and withhold tax on that distribution.
When to deduct RWT
A Maori authority must deduct RWT in two situations. The first is when it is either unable, or chooses not, to fully impute a taxable Maori authority distribution with Maori authority tax credits. The second is when the authority does not have a member’s IRD number.
When one of these situations arises the authority must deduct RWT when it pays the distribution. For RWT purposes “pay” does not necessarily mean when the cash is finally paid to a member.
Pay for RWT purposes means to distribute to, credit to an account or deal with an amount of money in a member's interest, or on behalf of that member.
Whichever of these events occurs first fixes the payment date of that distribution.
For RWT purposes Maori authorities distributions are generally paid when the authority resolves to make the distribution and then records the particular amounts of that distribution that is payable to each individual member.
Our Kaitakawaenga Māori can provide one-to-one advice and information on Māori authorities paying distributions – reporting requirements. You can request a visit from a Kaitakawaenga Māori here: