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Interactive Brokers - Dividend payments

Discussion in 'Brokers' started by redrooster44, Oct 3, 2009.

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  1. redrooster44

    redrooster44

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    Not only is this my first post, I am also fairly new to IB.

    I noticed that my BHP dividends were paid directly into my IB account rather that directly to me or a nominated bank acct as would a Aust broker. My question is, do I still receive a dividend notification, stating the details relating to the dividends such as franking details, as to date I have not received any notification.

    Thanks in advance

    Red rooster44
     
  2. freebird54

    freebird54

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    they notified me of an impending divi in plenty of time giving me full details
     
  3. cornnfedd

    cornnfedd

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    if you go on the computer share website you can electronically check where you dividend payments will go (I can anyway) so i assume you can still do the same even using IB.

    http://www.computershare.com.au/
     
  4. skyQuake

    skyQuake

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    You do not have a HIN so you cannot check via computershare. IB does give you some kind of message in Account Management though.
     
  5. freebird54

    freebird54

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    yes I just got my NAB divi message in plenty of time - anyone know how they advise you of imputation credits?
     
  6. RazzaDazzla

    RazzaDazzla

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    This is a big question I've got too...

    I'll be damned if I'm going to fore go franking credits if I trade and hold shares with IB!

    Do IB or the underlying company give you tax information for the purpose of claiming franking credits?

    AFAIK; you do not own the shares; IB own's them in trust for you. So any dividend info would go to IB, not to you. But I still really want my dividend statements.
     
  7. alphaman

    alphaman

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    I think you have to calculate the franking credits yourself. IB is not too interested in this stuff.
     
  8. RazzaDazzla

    RazzaDazzla

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    So when I do my tax return what do I tell the tax man? Oh this is what I calculated myself?

    Surely I need some official notice of franking credits?!
     
  9. SuperGlue

    SuperGlue

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    Aren't we considered as "Foreigners" as in foreign trading account with IB in US, although we live in Australia?

    So what franking credit, etc.....IMO

    I new with IB , so have not received any divivdends yet from any my shares.

    Be good if someone can check with ATO.
     
  10. skc

    skc Goldmember

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    The physical statement has nothing to do with whether you can claim the franking credits or not. You can always go to website of the underlying company and work out what the franking percent is.

    It's self reporting in Australia... The taxman doesn't actually want to see your dividend statements. The evidence you provide (if audited) will be your IB statement and relevant tax information from the company.
     
  11. RazzaDazzla

    RazzaDazzla

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    OK,

    So put simply; keep track of my dividends and franking credits my self and if audited; show the tax man my IB statement and direct him to the companies website where they'll see the franking %.

    Still, a bit of a pain in the bum. Life was easy when you'd get a dividend statement from a company.

    I guess that's the price you pay for $6 brokerage :)
     
  12. nomore4s

    nomore4s Commonsense isn't that common

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    You'd only have to do that if you're audited. You should have a method for keeping track of your d/e and franking credits anyway.

    I only give my accountant the total of my d/e & credits at the end of the year not every bit of paper work I get.
     
  13. So_Cynical

    So_Cynical The Contrarian Averager

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    Eerr that's why its called self assessment. :p:
     
  14. NickA

    NickA

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    People saying you can calculate the franking credits yourself are dead wrong.

    The distribution statement is your only evidence of the franking credits distributed to you. If you don't have a distribution statement, as far as the ATO is concerned you're not entitled to the franking credits.
     
  15. titl4

    titl4

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    That sounds like you have firm knowledge on this. Can you quote a reference or source so we can all be totally satisfied on the issue?
     
  16. freebird54

    freebird54

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    they told me the correct figures are on every company website

    ATO accept this?

    Also They have just taken witholding tax off me for the first time - even though my company has a tax file number - do they not record this?
     
  17. Nero64

    Nero64

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    My question is when do you receive the dividend payment.

    Last time I received a payment COB on the EX-Dividend date.

    This time a company I bought into went EX on Friday and no payment has come through.

    Of course if I had a HIN and went through commsec I would be paid on the payment date, but with IB what is the norm? When should I start contacting them saying I want my money?
     
  18. freebird54

    freebird54

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    They are taking withholding tax from divs as their holding company is offshore so I will have to claim these back in my return

    We will have to get the imputed credits from the company website [a pain] unless someone knows a sit where divs are summarised [say for the ASX top 100]?
     
  19. titl4

    titl4

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    This concerned me so have done some checking. As far as I can find out the statement below is correct. With self assessment obviously you are able to include imputation credits on your tax return but the distribution statement is the evidence you need to substantiate your claim. Individual distribution data is provided by companies to the ATO.


     
  20. RazzaDazzla

    RazzaDazzla

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    So what's the bottom line on all this?

    Can you claim franking credits if you trade with IB? If so; how can you do it easily? Easy in the "good ole days" was hanging onto the dividend statement when it was posted to you.
     
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