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IR8 Māori authorities' provisional tax guide (addendum) (IR484)

About this guide

This guide outlines recent law changes to the tax rules for Māori authorities, taking effect from the 2004 - 05 income year.

PDF | 72kb | 2 pages

When to use this guide

This guide is to help you complete your provisional tax calculations for the 2005 income tax year. Please complete the calculation sheet (on the second page) and include the final figure on your tax return for 2004.

Your return should be filed by 7 July 2004 unless you have an extension of time.

What you will need

As there are two ways of calculating provisional tax for the 2004-05 year, first you will need to decide which method is best for your authority.

Standard option:
Māori authorities that use the standard option for calculating their provisional tax payments for the 2004 - 05 income year could either substantially overpay or substantially underpay their provisional tax liability for this year.

Estimated option:
To minimise the risk of substantial overpayment or underpayment and possible penalties, companies and trusts electing to be, or ceasing to be a Māori authority, may estimate their provisional tax liability for the current year, using a formula incorporating the different tax rates, adjustments to taxable income, and uplift factor (in a similar way to the standard option). Māori authorities using this formula to calculate their estimates will meet the "fair and reasonable standard" and avoid the lack of reasonable care penalty for estimates of provisional tax