Interactive Brokers - Dividend payments

redrooster44 · 3 October 2009

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

freebird54 · 27 October 2009

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

cornnfedd · 27 October 2009

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/

skyQuake · 27 October 2009

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

freebird54 · 30 October 2009

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

RazzaDazzla · 17 November 2009

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.

alphaman · 17 November 2009

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

RazzaDazzla · 17 November 2009

alphaman said:
I think you have to calculate the franking credits yourself. IB is not too interested in this stuff.

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?!

SuperGlue · 17 November 2009

RazzaDazzla said:
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?!

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.

skc · 17 November 2009

RazzaDazzla said:
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.

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.

RazzaDazzla · 17 November 2009

skc said:
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.

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

nomore4s · 17 November 2009

RazzaDazzla said:
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

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.

So_Cynical · 17 November 2009

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

Eerr that's why its called self assessment.

:

NickA · 28 February 2010

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.

titl4 · 3 March 2010

NickA said:
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.

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?

freebird54 · 6 March 2010

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?

Nero64 · 14 March 2010

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?

freebird54 · 19 March 2010

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]?

titl4 · 24 March 2010

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.

NickA said:
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.

RazzaDazzla · 24 March 2010

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.

Interactive Brokers - Dividend payments

redrooster44

freebird54

cornnfedd

skyQuake

freebird54

RazzaDazzla

alphaman

RazzaDazzla

SuperGlue

skc

Goldmember

RazzaDazzla

nomore4s

Commonsense isn't that common

So_Cynical

The Contrarian Averager

NickA

titl4

freebird54

Nero64

freebird54

titl4

RazzaDazzla

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