Section seventy-eight of the principal Act is hereby amended by inserting, after paragraph (ee) (as substituted by section six of the Land and Income Tax Amendment Act 1935), the following paragraph:—

Section seventy-eight of the principal Act is hereby further amended by inserting in subparagraph (i) of the said paragraph (ee), after the words “treatment, manufacture, and sale of products of milk”, the words “or as a shareholder or supplier of a company the income of which is exempt from taxation under paragraph (eee) of this section”.

Section seventy-eight of the principal Act is hereby amended by repealing paragraphs (f) and (ff), and substituting the following paragraph:—

The following enactments are hereby consequentially repealed:—

1943, No. 9 1945, No. 37

Section six of the Land and Income Tax Amendment Act 1944 (as amended by subsection two of section four of the Land and Income Tax Amendment Act 1950) is hereby further amended by inserting, after subsection eight, the following new subsection:—

This section shall apply with respect to deposits made and not refunded before the passing of this Act and to deposits made after the passing of this Act.

Section fifteen of the Land and Income Tax Amendment Act 1945 (as amended by section eight of the Land and Income Tax Amendment Act 1951) is hereby further amended by omitting from subsection one the words “nineteen hundred and fifty-three”, and substituting the words “nineteen hundred and fifty-four”.

Section eight of the Land and Income Tax Amendment Act 1951, is hereby consequentially repealed.

Section eight of the Land and Income Tax Amendment Act (No. 2) 1950 is hereby amended by omitting from subsection five the words “nineteen hundred and fifty-three” wherever they occur, and substituting in each case the words “nineteen hundred and fifty-four”.

Section nine of the Land and Income Tax Amendment Act (No. 2) 1950 is hereby amended as from the commencement thereof by adding to the proviso to paragraph (b) of subsection one the words “in respect of any farming or agricultural business, whether the business is carried on by one person or by two or more persons in partnership or otherwise jointly or in common, whether as legal owners or as beneficial owners, and whether as trustees or otherwise”.

Section sixteen of the Land and Income Tax Amendment Act 1939 is hereby amended by inserting, after subsection nine, the following subsections:—

Notwithstanding anything to the contrary in section sixteen of the Land and Income Tax Amendment Act 1939 or in section nine of the Land and Income Tax Amendment Act 1949, where any livestock used by a taxpayer in any farming business is sold or otherwise disposed of by the taxpayer to any child of the taxpayer without consideration in money or money’s worth or for a consideration that is less than the market price of the livestock at the date of the sale or other disposition, and the livestock is thereupon used in a farming business carried on by the child, the livestock shall be deemed for the purposes of the principal Act to have been sold at and to have realized the market price thereof at the date of the sale or other disposition, unless the taxpayer elects to adopt instead of that market price a price fixed in accordance with subsection two of this section.

The taxpayer may elect to adopt instead of the market price a price in respect of any class of the livestock equal to the greatest of the following amounts:—

1939, No. 34

in which event the livestock shall be deemed to have realized the price adopted by the taxpayer in pursuance of that election.

Notice of any election made under this section shall be given to the Commissioner in writing not later than the date on which the taxpayer furnishes his return of income for the income year during which the sale or other disposition takes place or, in any case where the Commissioner requires the adoption of the true value under subsection nine of section sixteen of the Land and Income Tax Amendment Act 1939, within one month after the Commissioner has given notice of that requirement, except that in respect of a sale or other disposition which took place during the income year that ended on the thirty-first day of March nineteen hundred and fifty-two, the notice of election shall be given within six months after the passing of this Act. No notice of election given after the time so specified shall have any effect unless the Commissioner in his discretion accepts it and gives notice to the taxpayer accordingly.

The price which under this section the livestock is deemed to have realized shall be taken into account in calculating the assessable income of the person selling or otherwise disposing of the livestock; and the child acquiring the livestock shall, for the purpose of calculating his assessable income, be deemed to have purchased the livestock at that price.

The foregoing provisions of this section shall, with the necessary modifications, apply in any case where a share or interest in any livestock used in any farming business is sold or otherwise disposed of by a taxpayer to any child of the taxpayer without consideration in money or money’s worth or for a consideration that is less than the true value of the share or interest at the date of the sale or other disposition, and the livestock is thereupon used in a farming business carried on by the child or by a partnership of which the child is a member:

Provided that, in any case where the livestock is, upon the sale or other disposition, used in a farming business carried on by a partnership of which the child is a member, the taxpayer may not elect to adopt any price unless that price is based on a standard value that was in force under subsection nine of section sixteen of the Land and Income Tax Amendment Act 1939 for the purposes of the partnership at the date of the sale or other disposition, or on a standard value that is adopted by the child and the other partner or partners for the purposes of the partnership.

For the purposes of this section the term “child” includes a stepchild, but does not include any child or stepchild under the age of eighteen years at the date of the sale or other disposition.

Section ninety-seven of the principal Act (as amended by section four of the Land and Income Tax Amendment Act 1941) is hereby further amended by omitting from subsection one the words “gold mining, mercury mining, or scheelite mining”, and substituting the words “mining gold, mercury, scheelite, molybdenite, copper, lead, zinc, antimony, tin, and manganese, or any of those minerals”.

Section four of the Land and Income Tax Amendment Act 1941 is hereby consequentially repealed.

For the purposes of this Part of this Act, unless the context otherwise requires,—

For the purposes of this Part of this Act an amount shall be deemed to be distributed by a Maori authority to a Maori—

Any amount distributed by a Maori authority to a Maori shall be deemed to be distributed out of income except to the extent to which the Commissioner determines that the amount does not represent income derived by the Maori authority:

Provided that, where the distribution is made in the course of the winding up or termination of a trust or authority, the amount distributed shall be deemed to be distributed out of income to the extent only to which the Commissioner determines that the amount represents either income derived in the year in which the distribution is made or income derived in a previous year which has not been assessed as undistributed income under section thirteen of this Act.

Where income is derived or held by a Maori authority in respect of any trust or authority during any income year in trust for or on behalf of or for the benefit of any number of Maoris exceeding twenty at the end of the year, the following provisions of this section shall apply.

Any amount distributed by the Maori authority to any Maori during any income year out of income shall be deemed to be income derived by the Maori in that income year (whether it was derived by the Maori authority in that year or any previous year), and the Maori shall be assessable and liable for income tax on that amount accordingly.

So much of the income derived by the Maori authority in any income year as remains after deducting therefrom—

shall be deemed to be undistributed income derived by the Maori authority, and the Maori authority shall be assessable and liable for income tax in respect of that undistributed income at the minimum rate prescribed by the appropriate annual taxing Act for income derived by individual taxpayers during that income year.

Where the amount distributed by the Maori authority to any Maori or Maoris during any income year out of income exceeds the income derived by the Maori authority in that year, the amount of the excess may be allowed as a deduction in computing the undistributed income derived by the Maori authority for any of the four immediately preceding income years, and the tax on any such undistributed income shall be assessed or reassessed accordingly.

This section shall apply and be deemed to have always applied to income derived or distributed by a Maori authority during the income year that ended with the thirty-first day of March, nineteen hundred and fifty-one, and during every subsequent year.

Where income is derived by a Maori authority in respect of any trust or authority during any income year in trust for or on behalf of any Maori or any number of Maoris not exceeding twenty at the end of the year, the following provisions of this section shall apply.

The income shall for the purpose of assessing income tax thereon be deemed to be income derived by the Maori authority as trustee for the Maori or Maoris, and also to be income derived by the Maori or Maoris as beneficiaries entitled in possession to the receipt thereof under the trust during the same income year within the meaning of paragraph (a) of section one hundred and two of the principal Act, and the Maori authority shall be assessable and liable for income tax thereon accordingly.

This section shall apply and be deemed to have always applied to income derived by a Maori authority during the income year that ended with the thirty-first day of March, nineteen hundred and fifty-one, and during every subsequent year.

Where during any income year to which sections thirteen and fourteen of this Act apply the number of Maoris having a beneficial interest in the income of a Maori authority in respect of any trust or authority—

the Commissioner may make such adjustments in the assessments of income tax as he considers just and reasonable, having regard to all relevant circumstances.

Where during the income year that ended with the thirty-first day of March, nineteen hundred and forty-eight, nineteen hundred and forty-nine, or nineteen hundred and fifty, any amount was distributed by a Maori authority to a Maori out of its income in respect of any trust or authority, that amount shall be deemed to be income derived by the Maori in that income year (whether it was derived by the Maori authority in that income year or any previous year), and the Maori shall be assessable and liable for income tax on that amount accordingly.

For the purpose of giving effect to the provisions of this section, the Commissioner may alter any assessment at any time, notwithstanding anything to the contrary in section sixteen of the principal Act.

Every Maori authority shall in each year furnish to the Commissioner, on or before the date prescribed as the date by which returns of income are required under the principal Act to be furnished in that year, a return in the prescribed form setting forth a complete statement of all the income derived by the Maori authority in respect of any trust or authority during the preceding year, together with particulars of the amount or amounts distributed to each Maori during that income year, the date of each distribution, the full name and address of each Maori receiving any such distribution, and the number (if any) of each of those Maoris on the Maori electoral roll.

The Maori authority shall in each year send to each Maori to whom any amount has been distributed a notice in writing in the form or to the effect following:—

The returns and notices relating to income derived and amounts distributed during any income year that ended on or before the thirty-first day of March, nineteen hundred and fifty-two, shall be furnished and given not later than the thirtieth day of September, nineteen hundred and fifty-three.

This section shall apply and be deemed to have always applied to income derived or distributed by a Maori authority during the income year that ended with the thirty-first day of March, nineteen hundred and forty-eight, and during every subsequent year.

Section twenty-nine of the Land and Income Tax Amendment Act 1939 is hereby repealed.

Notwithstanding anything to the contrary in the said section twenty-nine or in section one hundred and two of the principal Act or in any other enactment, no Maori authority or Maori shall be assessable or liable for income tax on any income derived or distributed by a Maori authority, except as provided in this Part of this Act.

Where before the passing of this Act any Maori or any Maori authority has been assessed for income tax in accordance with the provisions of section twenty-nine of the Land and Income Tax Amendment Act 1939 the amount so assessed shall, notwithstanding anything to the contrary in this Part of this Act, be deemed to be and to have been correctly assessed and properly payable, and no refund of any such income tax shall be made in consequence of the foregoing provisions of this Part of this Act.

Section five hundred and fifty of the Maori Land Act 1931 shall not apply or be deemed to have applied at any time since the commencement of that Act so as to prevent the payment by a Maori of any income tax for which he is assessed, or the payment out of income derived by a Maori authority in respect of any trust or authority of any income tax for which the Maori authority is assessed in respect of that trust or authority, or which the Maori authority is required to pay under section seven of the Finance Act 1942, or which the Maori authority is authorized to pay by a Maori who is beneficially interested in that income.

Notwithstanding anything to the contrary in section eighty of the principal Act, the Commissioner may, in calculating the assessable income of a Maori authority, allow as a deduction any donation made by the Maori authority to any Tribal Executive or Tribal Committee constituted under the Maori Social and Economic Advancement Act 1945 for the purposes of that Act:

Provided that the amount allowed as a deduction under this section to any Maori authority in respect of any income year shall not exceed five per cent of so much of the assessable income derived by the Maori authority in that year as remains after making all other deductions that may be allowed by the Commissioner in calculating the assessable income.

Section four of the Land and Income Tax Amendment Act 1946 is hereby repealed.

Where the Board of Maori Affairs has at any time before the passing of this Act in effect declared that any land which is being or has been developed or improved under Part I of the Maori Land Amendment Act 1936 is farming land the profits of which are taxable, section four of the Land and Income Tax Amendment Act 1946 shall be deemed to have ceased to apply to the land on the date of the declaration.

All land owned by the East Coast Commissioner on the passing of this Act shall for the purposes of assessing land tax be deemed to be and to have always been Maori land within the meaning of the principal Act.