Interactive Brokers - Dividend payments

[So_Cynical]

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.

And just out of interest, when was the last time the tax office asked you to show paperwork to substantiate your claims.? .. also just out of interest, if the ATO did ask you to substantiate your claim...how would you claim that you came up with your numbers???

 

[RazzaDazzla]

Seems like IB and tax treatment of dividends is such a grey area.

I'm only new to IB; but I would have thought that dividends and their tax would have been easy to manage than this.

I realise the chances of the tax man demanding to see my dividend statements are slim; but still, if them the rules; surely IB could provide some sort of statement?

How are people handling this with their accountants?

 

[freebird54]

And just out of interest, when was the last time the tax office asked you to show paperwork to substantiate your claims.? .. also just out of interest, if the ATO did ask you to substantiate your claim...how would you claim that you came up with your numbers???

My thoughts too

I am calculating the imputation credits [most my stuff 100% franked so simple] and as per the ATO promise- if you have tried [and this blog could be intruduced in court;-) to do the right thing you will be forgiven.

I have been audited on an investment property and passed OK - a couple of errors were made but did not effect my tax position. The ATO people were fair. Time consuming though.

 

[elbee]

IB will automatically deduct withholding tax from the unfranked portion of any dividend or distribution paid on ASX holdings. This applies whether or not you are an Australian resident for tax purposes and is a consequence of the shares being held in IB's street name.

You will need to claim back the withholding tax through your tax return.

None of this affects your entitlement to the tax credits on the franked portion of the dividend. (Note - you do not need a dividend statement to claim franking credits - you do need to be able to show you had an interest in the shares for the relevant time and your IB statement is adequate for that.)

 

[freebird54]

Got the imp credits back as cash from the ATO

they always worked out to be 42% of the div

 

[dryath]

Little confused here and seems like there wasnt really consensus reached?

Can anyone clarify for me? - We can claim franking credits still when using IB and trading Aussie stocks?


Thanks guys!

 

[village idiot]

Little confused here and seems like there wasnt really consensus reached?

Can anyone clarify for me? - We can claim franking credits still when using IB and trading Aussie stocks?


Thanks guys!

yes you can. As others have said a statement of franking credits is probably not required since it is public knowledge what divs were franked, but if you want one;

In IB account management go to reports management>tax forms>and select the report titled fiscal year 2012. it has the franking credit in there. (Although it doesnt have it for dividends from warrants)

answering credits to SKC who gave me that answer last year

 

[skc]

yes you can. As others have said a statement of franking credits is probably not required since it is public knowledge what divs were franked, but if you want one;

In IB account management go to reports management>tax forms>and select the report titled fiscal year 2012. it has the franking credit in there. (Although it doesnt have it for dividends from warrants)

answering credits to SKC who gave me that answer last year

I have been ooking at the dividend report for FY12 and found that the report contained a fair few errors and omissions. It's 90% correct - but that's not particularly useful...

The major issues were:

1. The list determined dividends for the financial year based on ex-date rather than pay date.
2. There were some ommissions with several small holdings.
3. Some franking % were incorrect.

Did anyone notice these issues and have put them to IB?

 

[sammy84]

I have been ooking at the dividend report for FY12 and found that the report contained a fair few errors and omissions. It's 90% correct - but that's not particularly useful...

The major issues were:

1. The list determined dividends for the financial year based on ex-date rather than pay date.
2. There were some ommissions with several small holdings.
3. Some franking % were incorrect.

Did anyone notice these issues and have put them to IB?

Great, you've just created work for me. I've always had [stupidly and lazily] blind faith in their div report. I'll cross check this weekend and report back.

 

[bellenuit]

Does anyone hold HFA through IB and have your dividends, payable 28/3. been credited to your account yet?

They are normally a working day or two late with the dividend payments for most stocks, but this is excessive.

 

[joeno]

Trading through Commsec i usually got forms from each company's register requesting me where to direct debit the dividends to, and what my TFN is for tax purposes. With IB seems like such forms aren't sent to me... so stupid question but how do I receive my dividends if the company's don't know where to send it to?

 

[cutz]

Trading through Commsec i usually got forms from each company's register requesting me where to direct debit the dividends to, and what my TFN is for tax purposes. With IB seems like such forms aren't sent to me... so stupid question but how do I receive my dividends if the company's don't know where to send it to?

They get credited to your cash balance and show up on your statements.

 

[bellenuit]

They get credited to your cash balance and show up on your statements.

Also, at year end, in addition to your activity statement for the fiscal year, which lists all dividends received, there is a separate report produced that lists the franking credits applicable to each received dividend. This is usually under the "Tax" reports. However, I haven't seen it yet for fiscal 2015.

Franking credits can also be calculated by you manually from the dividend amount. The ASX and a few other sites give the franking % applicable to each paid dividend by each listed company.

 

[blue0810]

..I haven't seen it yet for fiscal 2015.


.

It is available now

 

[bellenuit]

It is available now

Blue. Where are you finding it? I have gone through all Report options and can't find it in any of them. Ta.

 

[blue0810]

Blue. Where are you finding it? I have gone through all Report options and can't find it in any of them. Ta.

It is here:

Reports ->Tax ->Tax Forms ->Income Transactions Taxable :
Then select “Fiscal Year Ending June 30, 2015”

 

[bellenuit]

It is here:

Reports ->Tax ->Tax Forms ->Income Transactions Taxable :
Then select “Fiscal Year Ending June 30, 2015”

Thanks Blue. I had been there before, but when I selected Tax Forms nothing happened for about 10 seconds and then a banner appeared with my account number in it in a drop down box. That is all. I assumed there were no reports available. This time I clicked on my account number (which is the only one I have) and it then listed several reports, including the required Franking Credits Report.

When I repeat the process now, it skips that intermediate step where I had to click on my account number and lists the reports directly.

 

[somebodyhere]

Revisiting this topic... has anyone bought a stapled security through Interactive Brokers (for example, Cromwell Group / CMW)? How does it work when it comes to the annual tax statement showing breakdown of distributed capital gains, foreign income, etc?

 

[joeno]

Hey guys so I'm having a similar issue. For the latest years I've been paid dividends straight into my IB account, without any tax or franking credits applied.

I'm wondering how and if i should claim the franking credits for all the those years i've been paid dividends? I'm currently on the 19c tax bracket but used to be 37c.

 

[HelloU]

(credits never go to the account of the holder - they are paid to the ATO by the company)
to do a tax revision, u do it through the ATO tax program or thru your accountant - one for each tax year so each years marginal rate will determine each outcome. They are easy to do and not a big deal.