Dividend and "less resident withholding tax"

bonkerrs · 16 September 2014

Today I received a dividend letter. Great... but I was hit with a "less resident withholding tax" which took out just under 50% of the total amount.

Is this because I didn't provide my TFN or ABN? If so, will this be tax deductable?

Do others fill in the forms for every share you buy?

edit: Sorry another dividend question: For tax purposes. What is the date to note down for my tax records... payment date or record date?

skc · 16 September 2014

bonkerrs said:
Today I received a dividend letter. Great... but I was hit with a "less resident withholding tax" which took out just under 50% of the total amount.

Is this because I didn't provide my TFN or ABN?

Yes. It's a punishment for being lazy.

bonkerrs said:
If so, will this be tax deductable?

You should be able to get it back. But I don't actually know the mechanics of how that happens. Talk to your tax accountant (another punishment )

bonkerrs said:
Do others fill in the forms for every share you buy?

Your broker should have your details already and send them automatically to the share registry for new buys. This includes your direct deposit bank details for dividends.

bonkerrs said:
edit: Sorry another dividend question: For tax purposes. What is the date to note down for my tax records... payment date or record date?

Payment date.

https://www.ato.gov.au/Individuals/...you-must-declare/Investment-income/Dividends/

A dividend is assessable income in the year it was paid or credited to you. Your dividend statement should have the relevant date (often referred to as the payment date or date paid).

bonkerrs · 16 September 2014

Thanks SKC. Too many punishments! I already got punished today and yesterday from the Aussie market.

bonkerrs · 18 September 2014

skc said:
Your broker should have your details already and send them automatically to the share registry for new buys. This includes your direct deposit bank details for dividends.

Looks like its manual work. Just called Commsec and Computershares, no automated process for new buys. Have to fill in the forms for each new buy.

skc · 18 September 2014

bonkerrs said:
Looks like its manual work. Just called Commsec and Computershares, no automated process for new buys. Have to fill in the forms for each new buy.

Are you sure?! I use Westpac and it's all automated.

It has nothing to do with Computershare... but I'd thought Commsec will have that functionality.

bonkerrs · 18 September 2014

The 2 'bigger' share registries are Computershare and Link. Commsec cannot automate it from their end so I tried it from the registries.

Julia · 18 September 2014

That doesn't sound reasonable. Etrade also do it.

McLovin · 18 September 2014

skc said:
Are you sure?! I use Westpac and it's all automated.

It has nothing to do with Computershare... but I'd thought Commsec will have that functionality.

I have to do it manually. Although I noticed recently I wasn't getting withholding tax levied even though I hadn't provided my TFN. Weird.

It's not such a big deal just log onto Computershare website and update it.

Smurf1976 · 28 February 2020

Reviving an old thread but it seems I've had this tax deducted from a recent dividend.

Is claiming it back straightforward via normal Tax Return at the end of the financial year?

Or is there some drama and I need to sort it out now?

I still find it somewhat amazing that the broker has my TFN but somehow it's not going to the relevant share registry. I mean it's 2020, right?

qldfrog · 28 February 2020

Smurf1976 said:
Reviving an old thread but it seems I've had this tax deducted from a recent dividend.

Is claiming it back straightforward via normal Tax Return at the end of the financial year?

Or is there some drama and I need to sort it out now?

I still find it somewhat amazing that the broker has my TFN but somehow it's not going to the relevant share registry. I mean it's 2020, right?

no big drama you will get it back at tax time but you will have to wait and need to keep track of these...

it is absolutely archaic: you need to provide the TFN, email preferences etc for every single holding even if you have a single unique CHESS
But I assume this is what CompuShare business is: sending shareholders letters, make the company pay for it ,send another letter with confirmation so afor each holding a few bucks to the broker, Australia posts a printer and a Scandinavian tree plantation at best/ a Malaysian conglomerate clear cutting Borneo at the worst.....

Smurf1976 · 28 February 2020

Just checked last year's tax return - seems I had one then too and the ATO picked it up automatically so I'll stop the panic now.

I still think it's silly that it's not automated though given that doing so would be dead simple.

qldfrog · 28 February 2020

Smurf1976 said:
Just checked last year's tax return - seems I had one then too and the ATO picked it up automatically so I'll stop the panic now.

I still think it's silly that it's not automated though given that doing so would be dead simple.

It is an opportunity for the ATO to get some cash and maybe never give it back or at least delay by a fy
The amount of waste is abysmal and that is my main issue, i could buy myself a coffee a day just with the postage of the trading related mail i get, and most are switched to email comms asap..which triggers another snailmail.....

Dividend and "less resident withholding tax"

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