CHESS Holding Statements from the ASX

[Panaman]

I keep getting these sent to me each time a buy or sell or dividend is reinvested, what for , accountant isn’t interested in them for tax returns ive just discovered as all the information he needs is on the Dividend advice or the buy or sell contract notes.

Should I or do I need to keep them or is it safe just to bin them? Seems a huge waste of paper to me

 

[rimtas]

Keep them until you hold the stock, after selling just throw them out.. Agree, waste of paper....and the labour hours needed to prepare, pack and send all those letters. When I used to live and trade in Europe, I have never ever got any letter from anyone, the trading platform had all historical information I needed for tax statements. And dividends were automatically credited to trading account.

 

[pixel]

I keep getting these sent to me each time a buy or sell or dividend is reinvested, what for , accountant isn’t interested in them for tax returns ive just discovered as all the information he needs is on the Dividend advice or the buy or sell contract notes.

Should I or do I need to keep them or is it safe just to bin them? Seems a huge waste of paper to me

I'm not sure if they're needed for anything - provided you have the contract notes on your computer and backed up for the required time.
However, I've been putting them in a big box - one per year - and smile at the thought of some tax auditors asking for detailed proof of my transactions. After 7 years, they can definitely be discarded ... BUT: Be aware that your HIN will be shown on those paper records. Therefore, make sure you shred them or use them as fire lighters in the fireplace or BBQ. (I shred them and donate the strips to our local pet shop for kitten or pup bedding.)

 

[rb250660]

I've sold my shares before they and the rest of the other junk arrives in the mail so I hand it all into the orange shred-x wheelie bin at work.

 

[skc]

I'm not sure if they're needed for anything - provided you have the contract notes on your computer and backed up for the required time.

Contract note is about buy and sell with your broker. CHESS statements is about settled holdings in your name. 99.9% of the time, trades and settlements are working perfectly and your contract notes and CHESS statements contain the same information. But I do keep both sets of paper for 7 years as per tax rule just in case somethign goes wrong.

In some situations... e.g. you BPay for a SPP (Share Purchase Plan) you may not get a contract note. In that case your CHESS statement assures you that you are the legal holder of the stock... in case your broker's computer goes haywire or something like that.

 

[Julia]

Contract note is about buy and sell with your broker. CHESS statements is about settled holdings in your name. 99.9% of the time, trades and settlements are working perfectly and your contract notes and CHESS statements contain the same information. But I do keep both sets of paper for 7 years as per tax rule just in case somethign goes wrong.

I do also. Not that hard and good to have backup.

 

[McLovin]

Keep them until you hold the stock, after selling just throw them out.. Agree, waste of paper....and the labour hours needed to prepare, pack and send all those letters.

I doubt those letters are manually prepared and packed.

I keep all mine. Just in case something ever happened.

 

[Craton]

I keep getting these sent to me each time a buy or sell or dividend is reinvested, what for , accountant isn’t interested in them for tax returns ive just discovered as all the information he needs is on the Dividend advice or the buy or sell contract notes.

Should I or do I need to keep them or is it safe just to bin them? Seems a huge waste of paper to me

Stating the obvious but nonetheless.

Chess statements have replaced the old Share Certificate that proved you are the owner of X number of shares as per that company's share register. If you weren't CHESS sponsored you'd get an Issuer Sponsored bit of paper.

The accountant might not need them but you do to prove you are the legal owner of any shares bought, reinvested, have options in, etc and are also proof of disposal of a holding. PITA in know but record management is a part of life whether one trades shares or not.

From here: http://www.asx.com.au/documents/research/chess_brochure.pdf

If you buy or sell financial products such as shares in
a listed company, you must exchange the title or legal
ownership of those financial products for money. This
exchange is called settlement.
For financial products traded on the Australian Securities
Exchange, settlement is effected by a world-class computer
system called CHESS, which stands for the Clearing House
Electronic Subregister System.

So yeah, keep 'em and dispose in seven years time.

 

[McLovin]

Stating the obvious but nonetheless.

Chess statements have replaced the old Share Certificate that proved you are the owner of X number of shares as per that company's share register. If you weren't CHESS sponsored you'd get an Issuer Sponsored bit of paper.

The accountant might not need them but you do to prove you are the legal owner of any shares bought, reinvested, have options in, etc and are also proof of disposal of a holding. PITA in know but record management is a part of life whether one trades shares or not.

From here: http://www.asx.com.au/documents/research/chess_brochure.pdf



So yeah, keep 'em and dispose in seven years time.

If you're keeping them as proof of ownership (which is the only reason I do), then wouldn't you hold onto them for either seven years or until you sell, whichever length is longer?

 

[qldfrog]

any explanation as to 7 years?
I thought the ATO was requesting 5 years only?
I clear all my broker/chess papers after 5y am i wrong?

 

[ROE]

5 Years .. 7 is the old rule

https://www.ato.gov.au/individuals/...cord-keeping/keeping-your-tax-records/?page=3

 

[skc]

5 Years .. 7 is the old rule

https://www.ato.gov.au/individuals/...cord-keeping/keeping-your-tax-records/?page=3

https://www.ato.gov.au/individuals/...cord-keeping/keeping-your-tax-records/?page=3

Only for people with "simple" tax affairs.

your income consists only of

salary or wages (other than from associates)
interest paid by a financial institution or government body
dividends from an Australian company listed on the Australian Stock Exchange (ASX)

That seems to suggest that if you have investment properties or capital gains, the 7 year rule still applies?

 

[ROE]

https://www.ato.gov.au/individuals/...cord-keeping/keeping-your-tax-records/?page=3

Only for people with "simple" tax affairs.



That seems to suggest that if you have investment properties or capital gains, the 7 year rule still applies?

Still 5 years, simple tax return applied to this

Shorter retention from 2004–05 on
We have made a determination SDR 2006/1External Link that some records for 2004–05 and later income years held by individuals with simple tax affairs need only be retained for two years. The records that are covered by this determination are a:

 

[skc]

Still 5 years, simple tax return applied to this

Shorter retention from 2004–05 on
We have made a determination SDR 2006/1External Link that some records for 2004–05 and later income years held by individuals with simple tax affairs need only be retained for two years. The records that are covered by this determination are a:

Oh thanks... I should learn to read things properly!

Althought I must confess... reading the ATO website is like reading a book written in French and translated into Chinese by a Russian lawyer when I can only read English!

And the book is poorly written.

 

[qldfrog]

I appreciate the confirmation, so will keep everything for 5 years

 

[ROE]

If you're keeping them as proof of ownership (which is the only reason I do), then wouldn't you hold onto them for either seven years or until you sell, whichever length is longer?

I wish they could do it in electronic form, I get a stack of them fairly often and it is a waste of paper and most of the time I put them in the shredder.

 

[ROE]

I appreciate the confirmation, so will keep everything for 5 years

You dont need chess holding statement for tax purposes, only buy and sell contracts and dividend statement

 

[SuperGlue]

I wish they could do it in electronic form, I get a stack of them fairly often and it is a waste of paper and most of the time I put them in the shredder.

I wish the same too.

But then think about the negative side, unemployment.
Timber industry, paper milling, transport, printing, Australia Post, shredding, rubbish collector and paper recycling will be out of work, well just a bit more unemployment.

Prime example Australia Post.

There are as many positives too.

 

[SuperGlue]

Oh dear..... shredded my past tax documents 3 weeks ago, read on ATO website
5 years was sufficient.
Today did more digging and found the following.
Good thing I don't have SMSF.

Record keeping for SMSF:
For some documents have to keep record for 5 years and other documents for 10 years.

https://www.ato.gov.au/Super/Self-m...-administration-/Record-keeping-requirements/


Record keeping with depreciating assets have a longer keeping period.

https://www.ato.gov.au/Individuals/...-keep/How-long-you-need-to-keep-your-records/


Please DYOR.